Overnight on Wall Street, stocks continued to dive for the second straight day. The Dow Jones Industrial Average dropped by 545.91 points to close at 25,052.83, while the S&P 500 fell by 2.1 percent to end the trading day stateside at 2,728.37 — below its 200-day moving average for the first time since April. The Nasdaq Composite also declined by 1.3 percent to close at 7,329.06.
Commenting on the plunge in stocks stateside, U.S. President Donald Trump said on Thursday from the Oval Office: "It's a correction that I think is caused by the Fed and interest rates."
Trump said he believes the U.S. central bank's monetary policy "is far too stringent," adding that "they're making a mistake and it's not right," and saying he was "not going to fire" Federal Reserve Chairman Jerome Powell.
Echoing Trump's sentiment on the Fed's interest rate policy, Richard Bove, chief market strategist at Rafferty Capital Markets, told CNBC on Friday: "The Federal Reserve cannot, you know, set interest rates at such a high level when every other major central bank in the world does not follow."
"It creates currency problems, inflation problems, interest rate problems and maybe recession problems in other countries and therefore, the flow of funds that was coming to the United States stops and I think that's what's happening right now," Bove said.
White House economic advisor Larry Kudlow also told CNBC on Thursday "there's some movement" toward a meeting between Trump and Chinese President Xi Jinping in Argentina at the G-20 summit in November, though the talks and topics to be addressed by the two leaders have not "been set in concrete."
At the same time, the most widely watched measure of investor fear jumped again on Thursday. The CBOE Volatility Index, popularly known as the VIX, gained about 8.8 percent to 24.98 — its highest level since the end of March. The VIX measures implied volatility on S&P 500 index options.
The futures market, however, suggested that a recovery could happen in the next trading session stateside. As of 3:20 a.m. ET, the Dow Jones industrial average futures was up by 303 points, indicating a gain of 430.17 points at Friday's open. S&P 500 and Nasdaq 100 futures also pointed to solid gains to start off Friday's session.