Posted on 08/05/2024 5:49:04 AM PDT by edwinland
The Nikkei plunged 12%, the most since 1987. Stock futures traded sharply lower and investors sheltered in the safety of bonds.
A global stock-market selloff intensified Monday, led by a more than 12% drop in Japan’s Nikkei 225. Tech-focused Nasdaq-100 futures were down more than 6%, while contracts tied to the S&P lost more than 4%.
The declines extended what has been a dizzying few days on Wall Street during which this year’s most popular trades have been aggressively unwound. A selloff in tech shares continued premarket Monday, with Nvidia, Meta and Apple each losing 9% or more. (The iPhone maker took an extra hit from news that Berkshire Hathaway had slashed its Apple stake.)
Concerns about a slowing U.S. economy are front and center for investors after job growth slowed sharply in July. Investors are worried that the Federal Reserve has moved too slowly and will need to play catch up in cutting rates.
Around the world, investors rushed for the safety of the bond market. The 10-year U.S. Treasury yield recently traded around 3.68%, down from over 4.1% a week ago and on pace to settle at its lowest level in more than a year.
In recent trading:
The VIX, considered Wall Street’s fear gauge, jumped to 65, its highest intraday level since the pandemic-induced selloff March 2020.
Treasury yields fell. Yields tied to the two-year U.S. Treasury note fell the furthest, as the yield curve continues to steepen.
(Excerpt) Read more at wsj.com ...
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NASDAQ now down 6%. It’s falling so fast the “live” headline can’t keep up.
With the rise of BRICS, we are now watching in realtime the takedown of fiat. It’s a Glorious Day.
The odd thing I see this morning is Gold also down. Interesting, perhaps some see an opportunity in selling gold to buy what they see now as “bargains” in stocks.
Remember, when a VERY SHARP knife is falling, don’t try to catch it!
And the stock market proper has not even opened trading yet. That happens at 9:30 am, gonna be a lot of skittish traders looking to bail out.
Futures down 1200 right now and trend is downward.
And just like food and housing prices the market has been propped up via inflation;-)
We are so screwed.
This is fear of Kommie continuing this disaster.
“Now that investors see the election as a toss up the entire economy has less value.”
I’m not sure about that. There are a lot of investors who are hardcore Dems. My guess is that global instability along with a slowing economy are scaring investors.
Exactly right, IMO. These analysts rarely discuss politics or factor it into market behavior.
The markets are all about the future and the sudden real prospect that a hardcore anti-American, anti-business, anti-Israel communist outdoors win the election (instead of the solidly pro-American, pro-business Trump) has really spooked the markets.
I wouldn’t be cheering the rise of the BRICS currency if I were you.
“With the rise of BRICS, we are now watching in realtime the takedown of fiat.”
If that’s so, then wouldn’t treasuries be crashing instead of rallying?
YES! Investors are waking up to the possibility of a Socialist/Marxist Amerika with Kommie-La in charge!
There’s also the issue of a potential wider Middle East war, too.
Read this thread:
https://freerepublic.com/focus/f-bloggers/4256332/posts
When a bank gets a margin call on they have to sell something. It does not matter if it is stocks, bonds, treasuries, Bitcoin or gold. You have to SELL to meet that Margin Call. This is happening all over the world.
Thanks, very poignant.
Although, mindful of reply #16, we are now in the midst of the Fog of Financial War.
Rising treasuries today could lead to plummeting tomorrow.
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