Stock market news today: Nasdaq futures sink 4%, Dow futures cascade down as global sell-off intensi

[mountaineer]

Stock market news today: Nasdaq futures sink 4%, Dow futures cascade down as global sell-off intensifies
Brett LoGiurato·Front Page Editor
Updated Mon, Aug 5, 2024, 8:00 AM CDT
Yahoo Finance

Wall Street's stock sell-off was set to intensify in a major way Monday as concerns mounted over the health of the US economy.

Dow Jones Industrial Average futures (YM=F) lost 800 points before the bell. Nasdaq 100 futures (NQ=F) were crushed by nearly 5% after the tech-heavy index entered into a correction with Friday's sharp losses. S&P 500 futures (ES=F) cascaded almost 3%.

Wall Street's "fear gauge" — the CBOE Volatility Index (^VIX) — soared, reaching its highest level since the early days of the COVID-19 pandemic. Treasury yields plummeted, with the benchmark 10-year Treasury yield (^TNX) sinking below 3.8%.

The global stock market is in the midst of a rapidly intensifying sell-off after Friday's lackluster US jobs report added to concerns about the economy and on whether the Federal Reserve had waited too long to begin cutting interest rates.  ...

[mystery-ak]

ublished August 5, 2024 6:51am EDT | Updated August 5, 2024 8:05am EDT
US stock futures tumble as part of global market sell-off
Global market sell-off triggered by US recession fears
By Matthew Kazin FOXBusiness


Stock futures plunged on Monday as U.S. recession fears caused turmoil throughout the global markets.

Dow Jones Industrial Average futures tumbled 1,300 points, while Nasdaq Composite futures slid 5%. S&P 500 futures also fell by more than 3.5%.

A weak jobs report and shrinking manufacturing activity in the world's largest economy, coupled with dismal forecasts from the big technology firms, pushed the Nasdaq 100 and Nasdaq Composite into a correction last week.

"While Friday’s employment report was disappointing, it wasn’t the only worrisome economic indicator, only the latest," said Greg McBride, Bankrate's chief financial analyst. "Couple economic concerns with the cacophony of earnings disappointments and weak corporate outlooks, global unrest, and currency gyrations, and you have the recipe for sudden volatility."

The weak jobs data also triggered what is known as the "Sahm Rule," seen by many as a historically accurate recession indicator.

"The July jobs report is being viewed as a recession warning, and the markets are responding accordingly," said Bill Adams, chief economist at the Dallas-based Comerica Bank.

more
https://www.foxbusiness.com/markets/us-stocks-august-5-2024

[Free Vulcan]

VIX is around 38 at the open, bid/ask spread on the options is huge, so there is definitely fear in the market.

Question is, is it real or are the markets trying to force the Fed's hand?

[libertybele]

VIX is around 38 at the open, bid/ask on the options is wide, so there is definitely fear in the market.

Question is, is it real or are the markets trying to force the Fed's hand?

Hard to tell. Our deficit has spiraled out of control and there's no longer any confidence in the U.S. dollar/treasuries. Japan's market is down over 12%, Warren Buffet has reduced his exposure to tech stocks, AI stocks have plummeted. Cyrptocurrencies have declined.

Dow drops 1,000 points, Nasdaq craters 6% in global market

Fears of a U.S. recession were the main culprit for the global market meltdown after Friday’s disappointing July jobs report. Investors are also concerned that the Federal Reserve is behind in cutting interest rates to bolster an economic slowdown, with the central bank choosing instead to keep rates at the highest in two decades last week.

Other global markets were also severely impacted:

    U.S. Treasury yields tumbled on the recession fears and as investors flooded into bonds for a global safe haven. Bond prices move inversely to yields. The benchmark 10-year note on Friday yielded 3.67%, down from where it was one week previously at 4.20% and the lowest in a year.............

There is also chatter about the unwind of yen “carry trade” adding fuel to the global market decline after the Bank of Japan raised interest rates last week. The yen is rising in value vs. the U.S. dollar, ending a practice of traders borrowing in the cheap currency to buy other global assets.......

............“It’s painful,” said Victoria Greene, chief investment officer at G Squared Private Wealth on CNBC’s “Worldwide Exchange.” “I think there’s a lot being absorbed that happened over the weekend between Berkshire cutting Apple...you had the Japan sell-off... you have the yen spike and the end of that carry trade...You have a lot of bad news getting priced in.”...........

...........“This is a pullback, a correction,” she added. “We’ll probably hit oversold at some point...rather quickly at these levels.”

https://www.cnbc.com/2024/08/04/stock-market-today-live-updates.html

[libertybele]

This is concerning....

Spot gold falls nearly 3% to $2,464/oz, spot silver down nearly 7% to $26.502/oz as metals slide amid global equity panic

 Precious metals are reeling along with the broader market on Monday morning as fears of a U.S. recession have set off a sharp slide in global equities.

After opening close to $2,440 per ounce, spot gold saw a double bounce at $2,420 as news of the collapse of Japanese equities hit the wires, causing crypto and other risk assets to drop sharply during overnight trading. Gold prices initially saw a rally off their lows, with spot rising to a session high just shy of $2,460 per ounce shortly after midnight EDT as investors fled to safety.

But as the panic spread through the Asian and European sessions, gold was dragged lower once again, and after failing to hold support at $2,420 per ounce, spot gold began its own collapse shortly after 6:30 a.m., falling $60 in two hours.

[Free Vulcan]

Hard to tell. Our deficit has spiraled out of control and there's no longer any confidence in the U.S. dollar/treasuries. Japan's market is down over 12%, Warren Buffet has reduced his exposure to tech stocks, AI stocks have plummeted. Cyrptocurrencies have declined.

The rub is that this has been going on for months upon months, yet the market has vaulted to ever higher highs completely out of touch with reality, basically fueled by monetary effect.

Stevie Wonder could have seen this one coming. It reminds me of '08 all over again.

[catfish1957]

The rub is that this has been going on for months upon months, yet the market has vaulted to ever higher highs completely out of touch with reality, basically fueled by monetary effect.

Stevie Wonder could have seen this one coming. It reminds me of '08 all over again.

Even taking '87,'01, 08, and '20 out the equation, people seemed to have forgotten what gravity is.

[Free Vulcan]

Even taking '87,'01, 08, and '20 out the equation, people seemed to have forgotten what gravity is.

People always think that when the Fed pumps rivers of money into the economy it always goes into consumer goods. It goes everywhere, including and especially the markets.

And I won't even get into land prices around here.

[libertybele]

Even taking '87,'01, 08, and '20 out the equation, people seemed to have forgotten what gravity is.

I still find it interesting (not coincidental) that the market is 'correcting' before the election and I think we're heading for a depression rather than a recession. 

Hopefully everyone has stocked up on essentials as much as they could.

[libertybele]

People always think that when the Fed pumps rivers of money into the economy it always goes into consumer goods. It goes everywhere, including and especially the markets.

And I won't even get into land prices around here.

I think that the real-estate market is going to follow.  Land values, and houses around here have gone through the roof. It happened around here awhile back in the late '90's and values plummeted once the NASDQ fell substantially. An empty lot on freshwater for $150,000 or Gulf Access double and triple that?  It's crazy.  The real estate market is due for a correction, but how long will that correction linger?

I truly feel sorry for those who have taken out mortgages since Joe took office.  It will be another scenario of people being upside down on their mortgages.

[mystery-ak]

https://twitter.com/rawsalerts/status/1820456778380837353

[mystery-ak]

https://twitter.com/RNCResearch/status/1820453946671989024

[mystery-ak]

https://twitter.com/rawsalerts/status/1820461876620280103

[Wingnut]

https://twitter.com/rawsalerts/status/1820456778380837353

Just loses on paper.  No need to jump off of buildings...  yet.

[mystery-ak]

Erick Erickson
@EWErickson
·
12m
How are the markets going?  The @CharlesSchwab
 website has crashed and people can't get into their accounts.

[LMAO]

And if we go into a recession, that  could ease inflationary pressures

Recessions don’t worry me. It’s what politicians do in response to them is what scary. What they need to do in response to a recession is absolutely nothing. And then it’s time to start looking at some spending cuts

We are going on almost 20 years of expansion of the money supply. You can’t print money to artificially prop up GDP numbers forever.

We had two back to back recessions in the early 80s and we came out much stronger on the other end. We had a minor recession in 1992 and we came out fine the other end


Washington needs to resist its urge to bail out companies and print more money to send checks out to people

[Hoodat]

The NASDAQ is up 16% over the last 12 months.  I must have missed the thread on that.

People act like that 16% was real.  It wasn't unless you bought into it a year ago and sold it today.  So relax, people.  The market is overpriced.  Been that way for many months now.  And the reason you bought stock a year ago is still valid today.

[catfish1957]

See the markets are clawing back, with no fundementals to support. 

Someone's or Something's capital infusion is propping this thing up for the moment.  I don't see any dead cats in the vicinty either.

[Bigun]

People always think that when the Fed pumps rivers of money into the economy it always goes into consumer goods. It goes everywhere, including and especially the markets.

And I won't even get into land prices around here.

 

I bought land here for $600 per acre in the 1980s and just learned of a sale nearby at $60,000 per acre. Insane!

[DefiantMassRINO]

Watch the trading volumes.

It's not unusual for low trading volumes in August to lead to outsized market moves.

I think the failure of Congress to pass that bill that gave tax breaks for business capital investment popped the A.I. bubble.

[catfish1957]

Even the 4 or 5 equities I've had my eye on, are still 20-40% overpriced before what I would call a bargain. 

This correction has a heck a lot further to go, before it peaks my interest.

[LMAO]

I bought land here for $600 per acre in the 1980s and just learned of a sale nearby at $60,000 per acre. Insane!

In two years when my wife and I retire, we’re going to move into our parents house on a lake in northern Minnesota as they are moving into an apartment. We bought the house from my parents back in 2020 for $350,000 at 2% interest


There was a house on that same lake that just sold and it was the same size house as my parents house and it sold for $620,000


Wow. And if the value of that house drops over the next few years, it sucks to be those people. My wife and I owe 160,000 on my parents house at a fixed 2% rate

Not a day goes by that I’m on bended knee thanking the Lord above… Lol

[DefiantMassRINO]

This might be an example of an automatic algorithmic trading toilet flush.

Also, look at short-trading volumes.  If there is a big short on, at some point there will be a dead cat bounce as the shorts have to cover their trades ... after they have made their billions.

[Bigun]

In two years when my wife and I retire, we’re going to move into our parents house on a lake in northern Minnesota as they are moving into an apartment. We bought the house from my parents back in 2020 for $350,000 at 2% interest


There was a house on that same lake that just sold and it was the same size house as my parents house and it sold for $620,000


Wow. And if the value of that house drops over the next few years, it sucks to be those people. My wife and I owe 160,000 on my parents house at a fixed 2% rate

Not a day goes by that I’m on bended knee thanking the Lord above… Lol

 

[Free Vulcan]

I bought land here for $600 per acre in the 1980s and just learned of a sale nearby at $60,000 per acre. Insane!

Two things drive rural real estate in southern Iowa - ag productivity and hunting value. Deer hunting has been the main driver for the last 25 years and had tripled land values to upwards of $3000 per acre before it started slacking off about 10 years ago.

To the west of me where I live in the Florida of Iowa, along the Missouri line clear to the western border, are low pop counties with generally poor soil, mostly dominated by Amish and Mennonites who can make it on smaller tracts of good soil along creek bottoms and such. That tends to keep a lid on things v. other more productive areas like Illinois.

Recently I looked and scrub pasture out in that area was going between $5-10K per acre. It's nothing but the froth of speculation and fools getting parted with their money. It's gonna be on helluva collapse when it happens.