Dow plunges more than 760 points amid US-China tensions

[mystery-ak]

Dow plunges more than 760 points amid US-China tensions
By Niv Elis - 08/05/19 04:23 PM EDT

The Dow Jones Industrial Average plummeted 767 points on Monday in U.S. stocks' biggest drop this year, as President Trump's trade war with China ratcheted up.

The Dow closed at 25,717, erasing all its gains since January 2018. At its lowest point in the day, the index was down a whopping 950 points.


Markets had their worst day since December 4th, 2018, when the Dow fell 799 points. The S&P 500 closed down 89 points, and the NASDAQ plunged 278.

In terms of points, the drop was the sixth worst day in the Dow's history, but in percentage terms the Dow's 2.9-percent drop did not register in the top 20 worst days, a reflection of the recent peaks which markets have reached. All three markets had set new records in July.

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https://thehill.com/policy/finance/456258-dow-plunges-more-than-760-points-amid-us-china-tensions

[truth_seeker]

Maybe China saw the two shootings, and the predictable negatives for Trump, and the time to jump on the band wagon, like democrats, the media and weak Republicans.


 

[Wingnut]

in percentage terms the Dow's 2.9-percent drop did not register in the top 20 worst days,

That fact will be absent in the nightly news. 

[libertybele]

That fact will be absent in the nightly news.

IMHO, don't expect a rebound anytime soon.  This is more than market cycle. 

One article came out that the top 1% are selling stocks and buying up real estate. IMHO, definitely not a good sign, as they are foreseeing a recession, people losing their jobs and consequently foreclosing on their homes and they will be there to buy up real estate.  Not a good scenario.

Other articles are stating that right now the clear winner is undetermined -- again not a good scenario as I see that as this may be a long term trade war; certainly won't bode well for either side.

https://www.marketwatch.com/story/the-superrich-are-selling-stocks-buying-properties-and-keeping-cash-ready-2019-08-05?mod=MW_home_top_stories

https://www.marketwatch.com/story/who-has-the-upper-hand-in-the-us-china-trade-war-2019-08-05?mod=mw_theo_homepage

[libertybele]

That fact will be absent in the nightly news.

??  I don't ever remember a 700+ point drop.

[Bigun]

??  I don't ever remember a 700+ point drop.

A 700 point drop in a 26,000 is about the same as a 350 point drop when the market was at 13,000.  There have been many days with higher percentage losses than today.

[dfwgator]

Bet it goes up at least 300 points tomorrow.

[Wingnut]

IMHO, don't expect a rebound anytime soon.  This is more than market cycle. 

One article came out that the top 1% are selling stocks and buying up real estate. IMHO, definitely not a good sign, as they are foreseeing a recession, people losing their jobs and consequently foreclosing on their homes and they will be there to buy up real estate.  Not a good scenario.

Other articles are stating that right now the clear winner is undetermined -- again not a good scenario as I see that as this may be a long term trade war; certainly won't bode well for either side.

https://www.marketwatch.com/story/the-superrich-are-selling-stocks-buying-properties-and-keeping-cash-ready-2019-08-05?mod=MW_home_top_stories

https://www.marketwatch.com/story/who-has-the-upper-hand-in-the-us-china-trade-war-2019-08-05?mod=mw_theo_homepage

I am calling all that horse hockey.  The traders did their usual knee jerk reaction to a news cycle.  It is how they roll.   

[kevindavis007]

I am calling all that horse hockey.  The traders did their usual knee jerk reaction to a news cycle.  It is how they roll.

No it is horse hockey that my 401k is being screwed cause of the stupid tarriffs.

[aligncare]

Maybe China saw the two shootings, and the predictable negatives for Trump, and the time to jump on the band wagon, like democrats, the media and weak Republicans.

Speculative, but with about as much chance of turning out true as anything else in this crazy political atmosphere we find ourselves in.

[catfish1957]

Bet it goes up at least 300 points tomorrow.

Chicoms decided to play scorched earth with that currency devaluation today.  That alone tells Trump that they have no intention of negotitating anymore.  As I said earlier, the best thing we can do as Americans is to do our best to avoid Chinese goods where posssible.  The point is to make them hurt more than we do.

Based on today, I expect Trump to escalate the tariff duties.  But if anyone says they know exactly how this going to play out? They don't know what they are talking about. 

Yes, there are going to be wide flunctuations, but IMO the overall direction of the market is going to be downward.  Hunker down Briefers

[Wingnut]

No it is horse hockey that my 401k is being screwed cause of the stupid tarriffs.

Then you need to adjust your 401K to another fund. 

[kevindavis007]

Then you need to adjust your 401K to another fund.

@scottlincicome
The guy who lost money selling steaks, vodka, gambling & football may soon be piloting a global currency war I'm sure it'll be fine.

[InHeavenThereIsNoBeer]

??  I don't ever remember a 700+ point drop.

There was one in 2008 when Congress rejected TARP, that many believe caused them to go back and pass the ^%#%^*& thing.

There were five last year, including the only two > 1,000 points.  [Last year also included the only > 1,000 point gain].

[Bigun]

If you want to blame someone blame Bush 41.  IIRC he's the one that put these Chicom bastards in play.

[corbe]

           I respectfully disagree @Bigun

[Wingnut]

@scottlincicome
The guy who lost money selling steaks, vodka, gambling & football may soon be piloting a global currency war I'm sure it'll be fine.

Don't get stuck on stupid.  Your 401 is not in danger.

[corbe]

@scottlincicome
The guy who lost money selling steaks, vodka, gambling & football may soon be piloting a global currency war I'm sure it'll be fine.

   I love It @kevindavis

[IsailedawayfromFR]

No it is horse hockey that my 401k is being screwed cause of the stupid tarriffs.

The only reason that 401k of yours will be screwed is if you sell at a loss.  And if you do sell and take a loss after the impressive runup for the past several years, your financial acumen is suspect in purchasing equities.

Are you not familiar with how the stock markets work?

And if your retirement plans are screwed based upon the last few months when the US finally decided to react to the unfair trade practices of China and other countries, then you do not understand how to properly plan for retirement.

Maybe it would be a safer plan for you to just plan on working instead of retiring.

[Bigun]

           I respectfully disagree @Bigun

Well, OK @corbe.  It was 41 who gave them most favored nation status though.

[catfish1957]

DOW futures are down about 1% at last hour.  If that holds, market tomorrow will open with another 250 or so point drop.

[Free Vulcan]

SPX futires well off their lows as of right now.

[Applewood]

No it is horse hockey that my 401k is being screwed cause of the stupid tarriffs.

@kevindavis

According to Trump supporters, you are not supposed to be concerned about your retirement because even if it your 401(k) goes down the drain, it's a small sacrifice to make for all the good this trade war is going to do for the entire country.  To be concerned about your future is selfish and unpatriotic. 

I don't bother trying to reason with these folks anymore..  At some point, when their own nest eggs go kaplooey, maybe then they will find out for themselves how wrong they have been.

[Bigun]

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[Wingnut]

I see the sun came up today and the market is recovering.

U.S. stock indexes opened higher Tuesday, recouping some of their losses after China’s central bank signaled it wouldn’t let the yuan fall much further, steadying a stock market that had been reeling from escalating trade tensions.

The Dow Jones Industrial Average rose 184 points, or 0.7%, to 25901 shortly after the opening bell. The S&P 500 climbed 0.8% and the Nasdaq Composite added 1.3%. The moves follow gains in Europe and broad declines across Asia.