Re: Fuck Joe Biden! Dow ends nearly 1,100 points lower and Nasdaq sheds 5%, marking its worst day in two years

Skip to first unread message

"The Biden Train

May 20, 2022, 12:20:03 AMMay 20
In article <XnsAC5BF3...@>
democratic faggots <> wrote:
> Science is lies,

say Democrats.

Everyone else knows Democrats are ignorant.

U.S. stocks swooned Thursday, with signs of panic selling
emerging as the Dow and Nasdaq booked their worst daily drops
since 2020, a day after the Federal Reserve delivered a widely
expected interest rate increase.

What happened
The Dow Jones Industrial Average DJIA skidded 1,063.09 points,
or 3.1%, ending at 32,997.97, its worst daily percentage drop
since Oct. 28, 2020, according to Dow Jones Market Data.
The S&P 500 SPX dropped 153.30 points, or 3.6%, to finish at
The Nasdaq Composite COMP lost 647.16 points, or 5%, closing at
12,317.69, marking its worst daily percentage fall since June
11, 2020.
On Wednesday, the Dow surged 932 points, or 2.8%, while the S&P
500 soared 3% and the Nasdaq Composite advanced 3.2%. The S&P
500’s gain was the largest one-day advance since May 18, 2020.

What drove markets
Signs of panic selling on Wall Street set in Thursday, a day
after a rally was sparked when Fed Chairman Jerome said the
central bank wasn’t likely to hike its benchmark interest rate
by 75 basis points at its next meeting.

While the comment immediately sent stocks higher Wednesday and
the dollar DXY and Treasury yields BX:TMUBMUSD10Y lower, an
entirely different scene unfolded Thursday.

“It’s really ugly,” said Kent Engelke, chief economic strategist
at Capitol Securities Management, by phone. “There was no place
to hide.”

Engelke attributed the sharp selloff to fears that Powell might
have been too dovish on the short-term pace of rate hikes over
the next few months. “The fear is the Fed is falling behind on
inflation pressures, and will be more draconian in the future.”

But the worst of the pain might not yet be over. “It’s
conceivable the S&P 500 needs to establish a bottom in this
3,850 to 4,000 range,” said John Lynch, chief investment officer
for Comerica Wealth Management, in emailed comments.

Powell all but promised consecutive 50 basis rate hikes, saying
it would take a cooling of red-hot inflation or a deteriorating
jobs market for the Fed to slow down the pace of rate increases,
and even then only by 25 basis point increments.

“There was perhaps of bit of an overextrapolation of what Powell
said in terms of not actively considering 75-basis-point hikes.
When in reality, the Fed is going to do what it has to do to get
inflation down,” said Michael Reynolds, vice president of
investment strategy at Glenmede, by phone.

Reynolds also said the central bank’s plan to shrink its near $9
trillion balance sheet, starting in June, also “isn’t something
to be ignored,” particularly if the economy, as he suspects, is
entering the late-stage of an expansion.

U.S. Treasury yields jumped Thursday, with the rate on the 10-
year note BX:TMUBMUSD10Y rise to 3.066%, its highest since Nov.
2018. Rising yields are a negative for technology and other
growth stocks in particular, cutting the present value of the
future earnings and cash flow their valuations are based upon.

“We are still not out of the woods yet, as there is still too
much uncertainty over how the Federal Reserve’s actions will
tame inflation without causing a recession,” said Zach Stein,
chief investment officer at the Carbon Collective, an investment
advisor based in Berkeley, Calif., in emailed comments.

“Investors are trying to figure out the proper valuation of the
broader stock market, particularly the technology sector, given
the Federal Reserve’s withdrawal of stimulus from the economy,”
he wrote.

Technology giants fell even harder Thursday than the main equity
indexes, with Facebook parent Meta Platforms Inc. FB shares
shedding 6.8%, Apple Inc. AAPL 5.6%, Microsoft Corp. MSFT 4.4%,
Google parent Alphabet Inc. GOOG 4.7% , while shares of, Inc. AMZN tumbled 7.6%, according to FactSet.

Read: Wild swings in stocks, bonds offer taste of more to come
on outside risk that U.S. inflation keeps getting hot

Meanwhile, data showed first-time U.S. jobless claims rose
19,000 last week to 200,000. U.S. productivity fell at a 7.5%
annual rate in the first quarter, the biggest drop since 1947.
Unit-labor costs jumped at an 11.6% annual pace in the first

The Biden Train Wreck

May 20, 2022, 1:15:03 AMMay 20
Reply all
Reply to author
0 new messages