Dow sinks more than 700 points. Stocks are on track for their worst quarter since 2023
Dow sinks more than 700 points. Stocks are on track for their worst quarter since 2023
US stocks were sharply lower Friday as investors digested souring consumer sentiment and inflation data that showed an uptick in one of the Federal Reserve’s key gauges, underscoring the delicate state of the economy as businesses brace for President Donald Trump’s tariffs.
The Dow tumbled 750 points, or 1.77%, on Friday. The broader S&P 500 fell 2.1% and the Nasdaq Composite slid 2.8%.
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Wall Street was also grappling with Trump’s announcement on Wednesday of 25% tariffs on all cars shipped into the US, set to go into effect April 3. Trump also announced tariffs on car parts like engines and transmissions, set to take effect “no later than May 3,” according to the proclamation he signed.
Thanks trump.
The trump regime was designed to TANK the US economy so that stocks, businesses, and industries can be bought by billionaires at rock bottom prices.
All is going according to plan.
I have an acquaintance that works for an old money, very wealthy family from oil money. The kind that influences regional as well as national politics. He worked for them during the last major recession in the late ‘00s. He basically said that his employer and all their buddies were running all over the world buying everything they could “like it is a fire sale” during the recession.
So yeah. This is how we get more billionaires, more oligarchs, and more meta national corpo monopolies where one company controls multiple brand names.
Yeah, almost seems like it. I am convinced they are at least doing something like the "Mar-a-Lago Accord" to devalue the dollar, unseat the USD as the global reserve currency, inflate debt away, and make wages low enough and people desperate enough so more manufacturing is viable in the US again.
Can you define "rock bottom prices"? -- asking for a friend.
Thanks Trump
I find it deeply funny that fascism is completely compatible with capitalism (it's arguably its end-state), but they're still tanking the economy because Trump doesn't understand tariffs.
Fascism ultimately tanks any system because it prices loyalty above all else and you inevitably end up without any compitent people in charge.
Yeah, for sure, fascist regimes have a pretty short shelf-life in general because of cronyism and incompetence. I'm just saying there's nothing inherent to fascism that should be tanking the economy right now in the way, say, a communist revolution would by causing capital flight. If he wasn't pushing the worst, most unnecessary trade war in history, Trump could have a strong economy right now.
I told my partner that we needed to stop excessive spending like going out to eat while the economy is so uncertain. She was ok with that. I'm not feeling great about our (collective) future. Sigh.
I hate that going for a meal out is considered excessive, from someone who is in the same boat as you.
And all restaurant owners are probably bracing for this to hit hard.
We also believe the dynamic macro environment has contributed to a more cautious consumer
Am I getting this right? Is this double speak for "the government is fucking up so badly, people try to save some wealth for the inevitable fall of society"?
I think that is what the main point is. Brace for extremely hard times.
I look forward to mainstream media using real words with real meaning, again.
Looks like I made the right choice pulling most of my 401k out of stock/blended funds and into stable bonds.
Looks like I made the right choice by not saving money at all and working until I die.
Looks like I made the right choice pulling most of my 401k out of stock/blended funds and into stable bonds.
You've made HALF the right choice. You "sold high", which is great!
However, the harder part is knowing when to go back in for the "buy low" part. If you're out of the market when that recovery occurs you'll be missing out on those gains. I've look at historical recoveries and can tell there is no way I'll know when that time is. I will guess wrong every time.
I hope you're better at it than I am.
Most people arent playing the market daily. Especially in something like a 401k. You dont need to time the bottom. We're already in a correction, and its still going. You can wait until the market recovers, and as long as you buy back at a price lower than what you sold, call it a win.
Dont chase, "what could have been" because youll always feel like you lost
Timing the exact top and bottom is impossible, but you can always sell at an all-time high and buy at a 52 week low.
Personally, I find it more effective for myself if I frame it in terms of "owning the most shares" instead of "making the most dollars".
If I started with 100 shares and now have 200 shares, I consider that a win, even if the 200 shares together are worth less than the 100 shares were at one time.
About Jan 21st, I moved 50% to "international developed market", there is 0 stock from USA in the fund.
Its almost like it can't forever be going up..
Almost like someone actively causing instability with bad economic policy and stirring global political instability would cause it to go down.
Except if you follow very basic economic policy and buy low/sell high a recession/major correction is just a buying opportunity. Think new game+ mode, now you extra stonks on your new playthrough.
Clarification: I'm talking about banks causing collapses as a way to consolidate. Not wallstreetbets shit.
But... But line. Line go up.
Youre telling me that exploiting the workers, making life horrible and expensive for the middle and lower class while giving tax breaks to the ultra wealthy makes the line not go up?
B... But line. Line go up!
With all this hysteria going around it seems like the general population has forgotten how we live in the real world and where we came from, how we got here.
Thanks trump. (if he can take credit for Biden's economy then he can take credit for his ineptitude too)
If he can take credit for the past admin, he can take credit for his failures.
He won't, Trump can do no wrong according to himself and his cult followers. Anything good is all him, anything bad is a nebulous thing he had no part of.
Wake me up when it's worse than 2022.
Hope you like short naps
wow, pandemic numbers without a pandemic. trump rules...!
imagine what it'll look like when the second pandemic hits
Meanwhile, the CAC40...
It's hard to lie about stock prices, let's watch them continue to shout their propaganda as the riots start.
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They inherited Biden's economy
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trump can't affect anything so soon
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It would be worse under Kamala
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We'll just have to suffer a little pain while trump fixes things
Take your pick of weak excuse
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There has been a lot of "lying" about stock princes over the last decade but quite indirectly so: for example the ultra low interest rates have allowed many companies to get loans merely to buy their own stocks, which pushes stock prices up whilst loading the company with more debt (and bad debt rather than good debt: not having been taken for investing in productive and marketing activities of the company, those loans will not lead to the increase in profitability needed to pay the debt back plus interest).
Similarly, because the wealth has been concentrating in fewer and fewer hands there has been a lot more money floating around looking for investments (every extra dollar in the hands of a poor or working class person is one extra dollar that goes into consumption, every extra dollar in the hands of a rich person is one extra dollar that's looking for investment), which has pumped up bubbles from realestate to crypto, and that includes stocks.
It's not "lying" in the sense that one person moved the markets by telling porkies, it's more of a mix of economic manipulation and an emergent system (in the Mathematical sense) transforming the actions of the various agents under these manipulated financial conditions into a big picture of stocks (and other "investment" class assets) going up in price even though no real increase in their underlying value has happened (the companies aren't really profiting so much more that it justifies their market cap increases, the houses whose prices are going up have no actual improvements to justify the higher prices - the value going up is basically justified by the value going up).
This is also called a buy phase
Buy low, sell high
Trumps policies are expected to pass costs on to consumers but have the benefit of maintaining production and development internally which should long term keep more money inside the USA, hardening supply lines against foreign influence. Given that China is openly campaigning for war on Taiwan by 2027 latest, and they're responsible for close to 80% of critical imports to US minerals, this puts the US in a predicament which Trump (probably not on purpose tbh, I won't give him the credit) is preparing for.
Tariffs on raw metals and minerals have proven effective since his first term with significant improvements in domestic refinement.
-"Tardif pass-through and implications for domestic markets: Evidence from US steel imports" Ahmad et al. (2023).
This isn't shared by other aspects of the supply network though like finished products or more complicated manufacturing because market instability halts investment in those areas, so no development actually increases in the US and prices just increase. This is a fatal flaw in the tariff calculus that is hurting trade and the economy. Manufacturing takes years to develop and adapt, and no one will leap on that kind of investment without clear assurances.
OMG... Trump was lying about fixing the economy? Please say it isn't so!
Stable genius getting results!!!
since 2023
So what's the explanation for why stocks dropped so much in 2023?
Inflation was part of it, also the Russian incursion into Ukraine was sparking fears of ww3.
The actions of this admin are reigniting those fears and we’re witnessing similar results in the market.
2022 4th quarter was the big drop, 2023 was small decline. The reason was higher than expected inflation, with expectation of interest rate hikes by the Fed.
Its a bit higher than the low it hit two weeks backish on the 13th. Its significant because the bit of recovery petered out and in the past little false recoveries like this was the stair step down that made it into a truly crashing market. It did not so far though fall below the low of the recent drop but it is pretty close to it.
"Technical" analysis is bullshit. There are enough value based indicators that show why the US stock market is going to have a rough time in the coming years without this hocus pocus speak.
E.g. the combined P/E of all stocks on the NYSE is over 25 while that of Nasdaq is over 29. That indicates a massive bubble as this ratio historically averages around 20.
This was already under Biden, Trump is just triggering the correction with his ineptitude instead of some outside factor. The fact he, unlike Biden, is not even trying to resolve the underlying causes will just make it worse.
I agree. honestly even that P/E is greatly skewed by this millenium. The correction was meant to happen about the time of covid but ironically covid caused a very short spike drop and I think the emergency itself combined with the efforts taken sort tar papered it out of it and it kinda went crazy opposite.
Why is Captain Kirk chilling at the Dow?
Wow who would have thought a demented orange traitor shitstain and his micropenis techbro side kick were absolutely imbeciles …..if only there had been signs
You're missing the part where they're completely awesome and no one could have predicted this. /s
as businesses brace for
President Donald Trump’s tariffs.cheap stock buybacks