Another ugly day for stocks, as Nasdaq tumbles
Source: CNN Business
It's another rough day on Wall Street, as the tech-heavy Nasdaq Composite is tumbling once again.
The market rout that started last week and included the worst day for stocks since June is clearly not over.
Several factors are weighing on investors' appetite for risky bets: worries about a resurgence of Covid-19 infections in the cooler winter months and the knock-on effect of the economic recovery, uncertainty surrounding the November presidential election and renewed US-China tensions. President Donald Trump said Monday that he wasn't "happy at all" with China and spoke about an economic "decoupling."
All three major stock indexes are sharply in the red at the start of the shortened Labor Day trading week, but they have bounced back from their session lows.
Read more: https://www.msn.com/en-us/money/markets/another-ugly-day-for-stocks-as-nasdaq-tumbles/ar-BB18ONem?li=BBnbfcN
Sep-Oct are typically when market crashes occur. Not quite sure if this is the start of a crashing market or if it is just a correction..
As of this post..
Dow down 560
Nasdaq down 408
Nasdaq is getting battered as tech seems to be in a free fall.
BumRushDaShow
(129,806 posts)and I think that plus the usual "profit-taking", is what is driving it. They bubbled it up to find a "high" and are now selling. And selling begets more selling, afterwhich you will have the "bargain hunters" come in and "buy low".
empedocles
(15,751 posts)BumRushDaShow
(129,806 posts)that the Dow would hit 4000 (back when it was in the 2000s). I thought he had lost his mind.
elleng
(131,274 posts)S&P 500
-2.24%
Dow
-1.89%
Nasdaq
-3.10%
empedocles
(15,751 posts)exponentially high prices, is that they went up the day before, and the day before that. Week to week, it seemed that they could not go down. That huge bubble can deflate a lot more. As noted here, and on Wall St commentaries, some of the top 5 rush was powered by newbies, some of whom used their gov. checks to try and make a quick buck - worked for awhile. Be interesting to learn if newbies are getting out in time.
Nasdaq gains has been luring other stocks and averages up.
hibbing
(10,112 posts)The ruling class has received yet another tax cut, lets us peons with a small 401 take the biggest hit.
Peace
bucolic_frolic
(43,426 posts)I've read investment books all my life. Here are there you remember some guru saying something that made sense. Technical analysis works perfectly - except at the all time highs and all time bottoms - because that's where technicals tell you the trend can't end.
It's April 1930, Ray D'Alio said this summer. Now we settle into the Greatest Depression. People aren't paying their bills because they have no cash flow and reduced jobs. Corporations pay their bills from government loans and Fed purchases of debt. We're driving far less. I read yesterday there are 104 oil rigs operating in Texas. Last December there were more than 400.
Financial gurus are abuzz with currency reset - and the Fed is pushing major changes through Congress that allow for more control over bank accounts, ends the use of cash, involuntary conversion of bank accounts to bank stock in a crisis, and fees for holding cash in banks. Negative interest rates in other words.
Hide in essential goods and services, and tech that enables home gigs.It's a barebones world going forward. Hopefully it will improve when a vaccine puts the pandemic to bed.
Warpy
(111,408 posts)but the air is being let out of both bubbles fairly slowly at this point.
It had to go, the market was incredibly overheated, especially the NASDAQ. People were throwing money at tech companies that should have gone under last spring since they have never turned a profit, but there was fast money to be made and their stocks just kept getting pumped up into the stratosphere.
Imallin4Joe
(758 posts)paleotn
(17,994 posts)We never learn, do we?
Warpy
(111,408 posts)and latecomers think it will last forever.
I remember hearing fellow nurses giving each other hot tips on tech IPOs in 1999. I told them to GET OUT NOW. One listened.. The rest regretted it.
paleotn
(17,994 posts)Yea, you try decoupling the US economy from China's. Let me know how that works out for ya.
ProfessorGAC
(65,322 posts)That NASDAQ loss is 4.11%.
Went up until 10:30am, but then just sloped down the rest of the day. Closing soon.
beachbumbob
(9,263 posts)its ready to pop down again
BlueWavePsych
(2,640 posts)https://seekingalpha.com/article/4372994-house-of-cards-is-ready-to-collapse
BlueWavePsych
(2,640 posts)https://seekingalpha.com/article/4372960-this-mini-crash-is-likely-only-beginning