Stocks drop again with Dow's two-day slide now totaling more than 1,000 points

[brooklynite]

Source: CNBC

Stocks fell sharply on Thursday as continuing fears over U.S.-China trade relations and concern over a possible global economic slowdown kept investors on edge.

The Dow Jones Industrial Average dropped 451 points, bringing its two-day losses to more than 1,000 points. The S&P 500 fell 1.5 percent while the Nasdaq Composite plunged nearly 2 percent.

Trade fears ratcheted up after Huawei CFO Meng Wanzhou was arrested by Canadian authorities on Wednesday in Vancouver, where she faces extradition to the U.S. The arrest decreases the likelihood that a permanent U.S.-China trade deal will be reached. Huawei is one of the largest mobile phone makers in the world.

Wanzhou's arrest comes after President Donald Trump and Chinese President Xi Jinping agreed to hold off on implementing additional tariffs on each other's goods. The world's largest economies have been engaged in a trade spat that has sent ripples through global markets. The skirmish has investors worried that corporate earnings and economic growth could be negatively impacted.

Read more: https://www.cnbc.com/2018/12/05/market-sell-off-set-to-continue-as-dow-futures-get-hit.html

[riversedge]

1. #trumpSlump

[beachbum bob]

2. what can the plunge protection team do today is now the big question

[Farmer-Rick]

8. That is a good question.

[BootinUp]

3. Trump needs Baghdad Bob's help. Nt

[politicaljunkie41910]

4. Certainly someone, somewhere in his base has to have a retirement fund that has plunged into the

depths of hell every time this economic no-nothing opens his mouth.

[IronLionZion]

14. Even better, a lot of those dipshits missed the Obama recovery

and bought high by investing after Trump took office. That buying spree and the expectation of tax cuts is what ran up the market in 2017. Those folks must be cursing now.

[Mr.Bill]

19. Yeah, the people who cashed out at 6,500

and bought ammo.

[durablend]

5. So much winning!

How much more can the country take?

[Farmer-Rick]

6. I think Traitor Trumps unnecessary trade war with China is NOT the cause

But the catalyst.

Traitor Trump tax give away gave $100 billion, in 2018 alone, to people who were already hoarding money. That $100 billion use to circulate in the economy but now it sits in some off shore account. And that's just the immediate result after the supposed stimulus from the tax give away itself.

The $375 Billion in increase in US debt annually is not even considered in that number.

But I think Traitor Trump's trade war finally pushed the stock market over the edge.

[beachbum bob]

10. want bankers are calling out trump for lying on trade deals that are not in existence, that is

the driving force now....instability breeds more instability.

[Farmer-Rick]

11. Yeah, exactly the instability is a big problem.

[beachbum bob]

20. other investment people are calling out trump as being untrustworthy..DUH

[politicaljunkie41910]

16. UNCERTAINTY IN THE MARKETPLACE IS THE CAUSE.

Wall St doesn't like uncertainty and everytime the Dipshit opens his mouth, stupid words come out that fuel market uncertainty. Now the wealthy can ride out these storms by just hanging tight and hanging in there knowing that this too shall pass. But working class folks and retirees or soon to be retirees don't know when the dust will finally settle and this may be all we've got. People who are afraid will sell prematurely and will never be able to make up that loss. I hang in there because I know better, but there's only so much one can take.

[Hortensis]

7. Huawei telecom has LONG been under investigation for breaking

American laws against exporting U.S.-originating technology to certain countries, such as Cuba, Iran, Sudan and Syria. Possibly also NK now. It didn't start with Trump. But this is definitely part of Trump's current aggression against Iran and China. He understands almost nothing about the many issues involved, but he's not as disconnected from reality as usual in believing China's still stealing U.S. technology and endangering our national security.

In addition to this, though, "Sabrina Meng Wangzhou is also the daughter of Huawei founder Ren Zhengfei - one of China's leading businessmen, an ex-People's Liberation Army officer and an elected member of the 12th National Congress of the Communist Party of China. In other words, Meng is part of China's elite."

NYT: Over the last decade, Huawei has grown into a powerhouse. Founded in 1987 by Ren Zhengfei, a former People’s Liberation Army engineer, it generated over $90 billion in revenue in 2017. Its equipment is the backbone of mobile networks around the world, and its smartphones are popular in Europe and China. That has made it a symbol of China’s technological prowess and evolution from a country that makes cheap but unreliable gadgets to cutting-edge products that can rival the best of Silicon Valley and other Asian technology giants.

Yet Huawei has long faced scrutiny as a security threat in the United States. Washington has expressed concern about using Huawei products, citing spying risk because of the company’s close ties to the Chinese government.

While Huawei has long tried to make inroads into the United States, it has been bedeviled by the security concerns. In January, Huawei’s effort to sell a new line of smartphones in the United States was derailed when AT&T walked away from a deal to distribute the devices.

[Farmer-Rick]

9. Glad to hear about the arrest

China has its capitalist elite too.

[Hortensis]

12. If this were truly about "no one's above the law,"

that'd be great. I have no problems with honest capitalists, but those who aren't belong in prison.

Unfortunately, this is about Trump using the tremendous weight of his office to smash his clueless and dangerous way around the planet. He enjoys creating chaos to break prior conventions because he resents their confusing constraints, you know. In addition to big damages, theres no telling who China will eventually have arrested in retaliation, perhaps extradited from another country to show they can do it also, but many decent little people are newly at risk of having their lives smashed.

[Joe Nation]

13. The inevitable crash and the upside

Every economist worth their salt has said that the markets are overdue for a recession/correction. Besides all of the obvious problems that come with every economic downturn such as unemployment, IRAs tanking, and the crushing of many middle class dreams, there are some upsides to a downward spiraling economy if you know where to look. I have been expecting a recession for the past year and have adjusted my investments to actually profit from such an occurrence and I have also taken steps such as selling my home at the top of the market only to buy again when home prices bottom out. You can passively ride out the recession if you choose and if you have the time left before you retire but that isn't my situation. I have to be aggressive with my decisions and act before the balloon bursts. No matter your situation, hang in there and don't think that you have to take the loss just because everyone else is. I lost 40+ percent of my worth in 2008. Never again.

[Farmer-Rick]

15. Good points all

I was about to sell my farm but serious issues prevented it. Now those issues have been resolved, the housing market drops. But I can wait. It will give me time to fix a few things.

[Yavin4]

17. Since Trump was elected, I've been stockpiling cash in a plain savings account

Wait for the next major correction and then buy.

[Joe Nation]

21. I too have been upping the savings account $$$

but you have to think about about your investments which can't be dumped in a savings account. Commodities is my solution.

[knightmaar]

18. If wealthy people in the U.S. begin to believe that his stupidity is having long term consequences

... to their wealth, and not just volatility they can make money from ... he will be impeached the next day.