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Trump claims 'presidential harassment by the Dems' is weighing on the stock market

Fred Imbert
Trump claims the recent downturn in U.S. stocks is a byproduct of "presidential harassment" by the Democrats.

President Donald Trump claims the recent downturn in U.S. stocks is a byproduct of "presidential harassment" by the Democrats.

Trump made his comments in a tweet Monday.

Trump's message comes after the Democrats won control of the House in the midterm elections.

"Candidly, trying to pin this on the election and what might happen to the market is fraught with peril and lacking logic. Trying to say the pesky Democrats are going to try to point out malfeasance by the administration – everyone knows this only goes so far," said Art Hogan, chief market strategist at B.Riley FBR.

It also comes after Trump and Senate Majority Leader Mitch McConnell said Democrats and Republicans can find common ground on infrastructure, among other issues.

"The one issue that Leader Pelosi and I discussed this morning, where there could be a possible bipartisan agreement, would be something on infrastructure," McConnell told reporters, referring to Rep. Nancy Pelosi, who is in line to regain the House speakership.

Equities have been under pressure recently amid fears that tariffs on foreign goods slapped by the Trump administration may slow down global growth. There's also concern about technology stock valuations amid possible slowing demand. Apple, for example, led the stock market lower on Monday, dropping more than 4 percent after a iPhone component supplier cut its forecast .

The Trump administration has implemented tariffs on steel and aluminum imports across the board. It has also targeted billions of dollars worth of Chinese goods with tariffs this year, to which China has retaliated with levies of its own.

Strength in the U.S. dollar has also dented stock prices recently. The dollar index, which tracks the U.S. currency against a basket of its peers, hit a 16-month high earlier on Monday. A stronger dollar puts pressure on companies that do large amounts of business outside the U.S.

Trump has repeatedly commented on the stock market during his presidency. On Oct. 30, he said equities were taking a "little pause" ahead of the midterms.

Last year, Trump cheered the stock market as it surged in anticipation of a massive corporate tax cut. On Dec. 14, Trump tweeted: "Republican Tax Cuts are looking very good. All are working hard. In the meantime, the Stock Market hit another record high!"

—CNBC's Patti Domm contributed to this report.