Wall Street's rally fades after President Trump announces China news conference.

[SoonerPride]

An early rally in the stock market Thursday faded late in the day after President Trump said he would hold a news conference about China amid rising tensions between the world’s two largest economies.

The S&P 500 turned negative after earlier rising as much as 1 percent. Before the reversal, stocks had been set for a third day of gains this week, a rally that reflected optimism about prospects for an economic rebound.

Mr. Trump’s announcement of a Friday news conference came as the United States intensified pressure on China over Hong Kong. China’s legislature on Thursday approved a plan that would broaden many of the mainland’s security practices to the semiautonomous city. The Trump administration signaled Wednesday that it was likely to end some or all of the U.S. government’s special trade and economic relations with Hong Kong because of the move.

Tension between Washington and Beijing, which are currently negotiating a trade deal, has been one of the few factors that has managed to deter bullish investors who have looked past the coronavirus pandemic’s immense human and economic toll, and instead have focused on signs of a recovery as they bid stocks higher.

Earlier Thursday, investors were undeterred by the U.S. Labor Department’s weekly report on unemployment claims, which showed that the surge of layoffs, though lessening, had not abated. More than 2 million U.S. workers filed jobless claims last week, bringing the tally since mid-March, when the coronavirus pandemic took hold, to over 40 million.

https://www.nytimes.com/2020/05/28/business/unemployment-stock-market-coronavirus.html?referringSource=articleShare

40,000,000 unemployed and the stock market soars.

5% shrinkage in GDP and the market soars.

Pres. Dumbfuck announces he might maybe possibly say something crazy about China and it’s time to abandon ship?

I really need someone to tell me what the fuck is up with the stock market.

It is no longer moored in reality. It is not forward looking. It is no longer tied to corporate earnings.

It’s a goddamned roulette wheel and open casino playing with house money (the Fed) and as long as someone else is paying the bills let the good times roll.

Is that about it? Please tell me I’m wrong.

[Moostache]

1. The market is where is ALWAYS seems to be preceding a huge bubble burst..

Irrational and reactive in both positive and negative directions.

Look at it like a flock of birds or school of fish evading a predator...one or two get going in a direction different than the rest and what looks like a panic sets in...then just as quickly, they start moving in the same direction again...

The market is basically devolved into a casino anyway...short term gains reign supreme, long-term fundamentals are for the next schlep-rock CEO to worry about, because the guy at the top is not sticking around for decades, you'll be lucky to get 36 months out of them in many cases...

[Mike 03]

2. I think it's what you said: the U.S. markets have decoupled (mostly) from bad news.

People are investing on hope, overvaluing any sign of future recovery, and undervaluing bad news. They want things to be better so badly that they are buying on the wish. For the past 5 days, Bloomberg News has been treating the China/Hong Kong story as their lead story, even more significant (to investors and economists) than the coronavirus. Three days ago they were bewildered that the markets had so little reaction to the Hong Kong story. I wasn't watching the markets today so I don't know what happened.

Asian markets open in a couple of hours.

[SoonerPride]

3. The Hong Kong news should have shaken the market

But no more so than what is happening on the ground domestically. Do US companies do more business with Honk Kong than the 330,000,000 Americans?

It literally makes no sense at all what is happening.

The sell off in March was a rational reaction to economic forces. Since the injection of unlimited Fed money it has propped the market up.

It seems like madness.

[uponit7771]

5. They overvaluing is 90% of Trump lying about vaccines and shit. I'm am gob smacked at how

... the market commentary leaves out the fact that Red Don is a 100% dead on liar about everything.

Fachi didn't help with his "Conceivable" vs probable statement.

[uponit7771]

4. Watch out on NASDAQ Tech stocks, its 2% from peak during the plague. Set stop losses to keep gains

[ProfessorGAC]

6. Down 21.45% Since Dec 1

Russell is down 13.8%.
And commentators talk about it like it's a bull market.
It's a bounce from an overcorrection. Nothing more connected to economics than that. But, it sure doesn't sound that way on the news.

[uponit7771]

7. "And commentators talk about it like it's a bull market.", +1 and we CONSUMMATELY see vaccine pump

... and dumps where insiders sell stocks of vaccine makers at pops based off news from STAT.

This is the most griftest government I've seen ever.

I wouldn't doubt Trump is poring money into equities now, shit ... treasury already said it'd by junk bond ETFs ...what's stopping them?!

[ProfessorGAC]

8. What Money?

I think he lives on debt. I don't think he really has anything shy of total liquidation.
Other than that, we're on the same page.
If he had $, he'd do as you suggest.

[uponit7771]

9. J Powell already committed to by junk bond ETFs, that's a HUGE fuck you to any company that's

... not on any exchange so what's to keep the Fed Reserve from buying equity ETFs outright?

NOTHING.

NASDAQ is 200 from peak ... moneys being poured into it from somewhere

[ProfessorGAC]

10. I Hope Not

I think that's worse than just printing money in scads.
I'd hate to see that happen.
So much for privately held small business, huh?

[uponit7771]

11. 👍