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Financial markets were hit by another wave of selling on Sunday evening, with investors and economists grappling with rising odds of a severe economic downturn caused by President Trump’s significant new tariffs on imports.
Futures on the S&P 500, which allow investors to bet on the index before the official start of trading on Monday, dropped roughly 4 percent on Sunday evening. In oil markets, which also open for trading on Sunday evening, prices fell more than 3 percent — adding to steep losses last week. And the price of copper, considered a broad economic indicator, slid more than 5 percent. The 10.5 percent drop in the S&P 500 on Thursday and Friday was the worst two-day decline for the index since the onset of the coronavirus pandemic in 2020.
The only other instances of a worse two-day drop came during the 2008 financial crisis and the 1987 stock market crash, according Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. In dollar terms, the more than $5 trillion that was wiped out in the S&P’s value in the two days last week stands unmatched.
Even more unusual is that last week’s sell-off stemmed directly from presidential policy. Mr. Trump has so far brushed off concerns about the market reaction and potential economic consequences, showing little intention of backing down. “If they’re maintained, the tariff hikes announced April 2 represent a self-inflicted economic catastrophe for the United States,” Preston Caldwell, senior US economist for Morningstar Research Services, said in a blog post on Friday.
Chief executives have begun warning consumers that they should expect prices to increase on some groceries, clothes and other products. Consumers have said they intend to rein in spending on big-ticket items. Some auto companies have already announced production pauses overseas, as well as job losses domestically. Bank economists have raised the odds that a recession will hit the United States over the next 12 months. As countries responded last week with tariffs of their own, the sell-off in financial markets accelerated.
The S&P 500 is now 17.4 percent below its peak reached in February, on course to enter a bear market, defined as a drop of 20 percent or more from a recent peak. The Nasdaq Composite index, which is chock-full of tech stocks that came under pressure as the sell-off accelerated last week, is already in a bear market, down almost 23 percent from its December peak. The Russell 2000 index of smaller companies that are more sensitive to the outlook for the economy has fallen over 25 percent from its November peak.
Scott Bessent, the Treasury secretary, said on Sunday on the NBC program “Meet The Press” that he saw “no reason” to expect a recession.
© 2015 Mutual Fund Observer. All rights reserved.
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Comments
Delivering the Party Line.
"““We have massive Financial Deficits with China, the European Union, and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the U.S.A.,”The Surplus with these Countries has grown during the ‘Presidency’ of Sleepy Joe Biden. We are going to reverse it, and reverse it QUICKLY,” Trump said. “Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”"
I swear this jackass's insane tweets about the markets since Wed is simply him trying to convince himself that he's right.
"During an interview with NBC News’ 'Meet the Press,' Bessent called it a 'false narrative' that Americans
who are close to retiring may be reticent to do so after their retirement savings may have dropped this week
due to the stock market downturn."
“'I think that’s a false narrative,' he told moderator Kristen Welker.
'Americans who want to retire right now, the Americans who put away for years in their savings accounts,
I think they don’t look at the day-to-day fluctuations.'”
https://www.cnbc.com/2025/04/06/treasury-secretary-scott-bessent-markets-tariffs-recession.html
Let us not forget that the buffoon's armed minions had a noose ready for Pence.
Either way, they say there is always a bit of truth in what liars say.
For example, let's take his now infamous "ONLY THE WEAK WILL FAIL."
We all know who the weakest amongst us is.
And this morning it looks like he's starting to, well, fail (miserably, again).
https://www.cnbc.com/2025/04/07/trump-tariffs-live-updates-stock-market-crypto.html
Should we believe them?
Well the market does! NASDAQ was UP ~4%, now back DOWN ~2%.
You can't make this stuff up - the RED PARTY openly referred to THEIR OWN news as
FAKE NEWS!