I think it’s just a correction. And corrections can be and usually are a good thing. When the Fed prints so much money, a lot of it goes into the stock market and bids up stocks. That’s not a good thing. It would be better if the money went into the economy than into the stock market. But it takes time to find ways to use newly created money in the economy at large, so it gets parked temporarily in the stock market. Eventually, the investors decide to sell, and that is when the money moves out of the stock market and into the economy at large. In the process, stock prices are bid down. Eventually, though, things stabilize, and they start to go up as new investors who are looking for an entry point instead of an exit point enter the market.
markets are reacting after the jobs report..this is a “true” economy now, not the smoke and mirrors of the last 8 years. All that printed money is out there, so naturally when it “truly” expands, fears of inflation are real. Especially the jump in wages..now is a good time to sell before the “brakes” are tapped to control inflation fears...