“A sharp rise in trade-war intensity sent Wall Street spiraling Friday, pushing the Nasdaq into a bear market denoting a 20% decline from its peak. China's decision to apply a 34% levy to all imported goods from the U.S. next Thursday, after President Trump's tariffs go into effect, rattled markets in part because it further deflated hopes that a global settlement could be reached soon. Further hitting sentiment, Fed Chair Jerome Powell said the U.S. economy was likely to face a period of higher prices and weaker growth than seemed possible a few weeks ago because of larger-than-anticipated tariff hikes.
“The S&P 500 dropped 6%, the Nasdaq slid 5.8% and the Dow Jones Industrial Average fell 2231 points. The carnage was widespread, with 14 S&P 500 stocks rising for the day and 28 dropping 10% or more. The marketwide toll from the two-day tariff rout surged to a record $6.6 trillion.
“The torrent of selling late this week shows investors coming to grips with the grim implications of the standoff. The levies announced late Wednesday were deeper and more aggressive than the business world expected. Retaliation stands to intensify the economic effects of the policies, which stand to reduce consumer income and slow economic growth.”
- This News Brief excerpted from (longer article) today’s online Wall Street Journal
Comments
https://bsky.app/profile/hmeisler.bsky.social/post/3lm2tyifqme2f
Obviously, I’m missing the point here somewhere.
I wouldn’t be surprised to see it test that 27,089 low the way things are going. So far … just a mere 10-15% down-blip from extreme recent highs.
I like to look at charts of the big 3 U.S. stock indexes. A good way to remain sober. But don’t bet the farm on them. The indexes don’t take into consideration dividends paid out / reinvested. The components of the Dow and other indexes change over time.
”… the world has changed drastically since Inauguration Day. If you can acknowledge that, you will find the point that you say you are missing …”
Hugh? I was referring to the linked chart Larry. It appears to show the Dow today at the point it was in 2020. Of course it is a lot higher. As one of the readers / commentators suggests, it may be at the 2020 level according to some ”trend line”. I kind of get that. Technicals are one good indicator of near term market direction for sure.
As far as “the world changing” - I do not invest according to my view of the world. I buy things I think offer good long term value after due diligence. Isn’t that how you would buy a home, a car, a collectable or a work of art? Based on your sense of intrinsic / future value? Why would investing in a commodity, a company, a bond, currency or a REIT be any different?
(But there are a lot of good discussions right now in OT about “the world changing”. Feel free to join in.)
Please know @LarryB has acknowledged investing in nothing except cash for several years. He is not a fund investor, He is clearly trying to disrupt this thread and turn it into yet another political discussion under the guise of investing.