Posted on 04/08/2025 9:57:22 AM PDT by E. Pluribus Unum
NEW YORK — Some relief is flowing through financial markets worldwide Tuesday as stocks bounce to recover some of their historic losses since President Trump dramatically raised the stakes in his trade war last week.
The S&P 500 was up 3.2% in early trading, though it still remains 15% below its record set in February. The Dow Jones industrial average was up 1,143 points, or 3%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 3.6% higher.
The bounce was global. Stock indexes rose 6% in Tokyo, 3.4% in Paris and 1.6% in Shanghai. The price of crude oil also pulled a bit higher after touching its lowest level since 2021 on Monday. Bitcoin steadied and was back above $79,000 after dropping toward $76,000 the prior day.
No big change is behind the move back upward, and analysts say more swings up and down are likely for markets in not only the days but also the hours ahead.
The big question remains centered on how long Trump will keep his stiff tariffs on other countries, which would raise prices for U.S. shoppers and slow the economy. If they last a long time, economists and investors expect it to cause a recession. But if Trump lowers them through negotiations relatively quickly, the worst-case scenario can be avoided.
Hope still remains on Wall Street that negotiations may be possible, and Japanese stocks led global markets after the country’s prime minister, Shigeru Ishiba, appointed his trade negotiator for talks with the United States. It was based on an agreement between Ishiba and Trump, Japanese officials said.
Of course, other countries are taking a more aggressive tack. China said it will “fight to the end” and warned of countermeasures after Trump threatened on Monday to raise his tariffs even further on the world’s...
(Excerpt) Read more at latimes.com ...
What o what are the panicans to do?
What? Investors are supposed to be jumping out of skyscrapers by now.
I wouldn’t count on a 4 digit gain.
The market doesn’t close for hours.
Any bad news could send traders into a selling frenzy.
Maybe just do a lowscraper?
This story is old. The market has been going down since 10am and over 800 of the 1000 point open had evaporated by early afternoon. Still a couple hours left in the trading day but the early up trend has completely reversed course. Perhaps we can squeeze out a small gain by the close.
Heading south again. +$158 at 1200.
Nasdaq is now down. DOW barely holding green.
This slide isn’t done, waiting to buy.
Heh. I’m reminded of the diner scene in the movie Pulp Fiction (Vince, Shut the... up!).
But you’re right (and your name is not Vince!)
Last week’s bloodbath was broad - nobody got spared except a tiny handful of the usual ‘safe haven’ type equities.
I’m not a day trader, I’m not a fund manager, and I’m certainly not a trading algorithm... but yesterday’s volatility and I suspect this morning’s dead cat bounce was really just funds, algos, and the tiny (tiny, tiny) slice of day traders doing some bargain hunting.
The best thing for any investor - including those with just 401ks - to do is ignore the tickers.
I’m sticking my 3 rules:
1. Never invest any money you think you will need in the next 5 years
2. Dollar Cost Averaging. Forget buy the dip. Forget timing. Consistent, regularly timed investments - like your 401k deductions - *always* win in the end.
3. Diversify. Diversify in markets - you *should* have foreign ETFs. Even some REITs. Bonds. Etc.
Pains me to say it, but this won’t be a 2020 Covid bounceback. I have my doubts it will even 2008 GFC timeframes.
But... the turtle always wins in the end. And if it doesn’t? Hey, we’re all doomed anyway :-)
The insiders aren’t tarrified, they’re switching from winners to losers, and holding cash before determining the unclear ones.
Meanwhile, TBills are still paying 4.1-4.3%.
https://treasurydirect.gov/auctions/announcements-data-results/
Secondly, most fund managers can not beat the S&P 500 Index fund.
But I'm clearly oblivious. Nobody could possibly remember 3 whole years ago!!
DJIA JAN 5 2022 36,722
DJIA JAN 24 2022 34,070 (down 2722 points in 3 weeks)
DJIA FEB 10 2022 35,630
DJIA FEB 24 2022 32,830 (down 2800 points in two weeks)
DJIA MAY 5 2022 33,854
DJIA MAY 12 2022 31,699 (down 2155 points in one week)
DJIA JUN 9 2022 33,087
DJIA JUN 17 2022 29,912 (down 3175 points in one week, and down 6810 points in 5 months)
And all we ever heard was Janet Yellen telling us that we weren't smart enough to realize what a great economy we had at that time, with those two quarters of negative growth, and those 4 major DJIA collapses in just 6 months... and the media pushing that narrative as well.
Who didn’t think this would happen?
BTW... The DJIA is down from JAN 31 2025 45073 down to 38136 currently is a drop of 15.3%... still less than Biden’s drop of 20% in JAN-JUN 2022... just faster, but the bounce back should (hopefully) be nice as fast as well.
Look again. Financial news that reports on hourly ticks of the market are worse than useless. I like Trump but I told my wife to move out of equities weeks ago. The guy is a change agent and risk off is necessary when in such a situation.
Trump just doubled the China tariffs. Up 1200 became up 120 and who knows what is next?
Yeah - I’m with you on TBills, though, there’s some hinkiness ongoing yields (I’m not saying nefarious, just a matter of volatility not yet working its way through).
But - 100%!!! with you on fund managers! God bless the ETF - and increasingly, simple math direct-index baskets.
You get these high-fliers who have a good year or two - Cathie Wood is one that comes to mind - who charge you 1-2% on a managed fund and tout “Look! I beat the S&P by 10%!!!”... Sure - then, you look at the history and ummm... yeah - you had ONE lucky year and lost to it the next *FIVE* years.
Gimme an ETF with a 0.X (preferrably, 0.25% or lower) expense ratio.
Fund managers should - mostly - be called Feather Fund managers... as in, they’ll feather their nests by funding from your fees.
Indeed and the cave digging hasn’t been finished.
Down 300 now, high volatility. IT will shale out.
Waiting until next Tuesday or Wednesday to pull the trigger. The China tariffs should be settled by then.
Then jumping in with both feet with a big bag of cash.
I’ve been waiting for another opportunity since the COVID Crash.
That is still paying great dividends.
Ain’t life Grand.👍🇺🇸
Yeah, it’s too viotile right now.
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