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.

[Wingnut]

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

Nice.  Say, How are the deer fly's.  Gonna be in Walker/Leech Lake in a month.  Those buggers are nasty.

[LMAO]

Nice.  Say, How are the deer fly's.  Gonna be in Walker/Leech Lake in a month.  Those buggers are nasty.

Two weeks ago I would’ve told you to stock up on bug spray

But we have cooler weather coming in so I couldn’t tell you what it’s like now. But It should be better come September

What brings you up to Leech Lake? Fishing?

[Bigun]

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.

Here its people trying to escape from Harris and Ft. Bend counties along with Exon/Mobil, Chevron, and others moving in but $60,000 per acre is still insane!

[DefiantMassRINO]

When the $h!t hits the fan, home equity lines of credit disappear.  Happened to me in 2008, even though I had 40% equity in the house.

[libertybele]

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

Houses and land are insanely high,  but I do think though we will see a real estate bubble that will burst.  Those that bought homes or re-financed when mortgage interest rates were low, will do fine. 

How are those starting out able to afford housing?? Sellers right now are lowering prices, but even at that it takes a heavy down stroke to get into a home and on top of that high interest rates; but nothing like the interest rates under Carter (yet). Rent is the same way; first month, last month and security deposit; all add up to a hefty sum.

[Free Vulcan]

Here its people trying to escape from Harris and Ft. Bend counties along with Exon/Mobil, Chevron, and others moving in but $60,000 per acre is still insane!

I wish I knew who was buying and why. This area is a Rust Belt backwater and people don't tend to move here, because they can't keep up their big city lifestyle or push their liberal spendy politics. Hope that hasn't changed and the west coast townies haven't tried to plant here.

[corbe]

The Wheels Have Started to Come Off for the U.S. Economy, and the Worst Is Yet to Come

by Michael Snyder  August 5, 2024 in Financial, Opinions

(The Economic Collapse Blog)—For a long time, there was a lot of denial about the direction that the U.S. economy was heading.  The Biden administration and the mainstream media just kept insisting that everything was just fine even though everyone could clearly see that it wasn’t.  But now reality is setting in.  Last week we got some numbers that Wall Street really didn’t like, and a massive temper tantrum ensued.

The panic that we witnessed on Friday was quite breathtaking, and many are concerned that it could bleed over into the new week.  Investors are desperate for the Federal Reserve to cut interest rates, but so far the Fed has not moved.

On Friday, many were surprised when the employment numbers were much worse than anticipated…

U.S. job growth cooled sharply in July while the unemployment rate unexpectedly rose to the highest level in nearly three years.

The Labor Department on Friday reported that employers added 114,000 jobs in July, missing the 175,000 gain forecast by LSEG economists. The unemployment rate also unexpectedly inched higher to 4.3% against expectations that it would hold steady at 4.1%.

It marked the highest level for the jobless rate since October 2021.

<..snip..>

https://conservativeplaybook.com/the-wheels-have-started-to-come-off-for-the-u-s-economy-and-the-worst-is-yet-to-come/

[Wingnut]

Two weeks ago I would’ve told you to stock up on bug spray

But we have cooler weather coming in so I couldn’t tell you what it’s like now. But It should be better come September

What brings you up to Leech Lake? Fishing?

Seeing family and do some recreating!  Kin on my dad's side settled in Nevis, Akeley and the big city of Walker back in the 1800's. And my Sis still lives in Bemidji!

[mystery-ak]

Ian Miles Cheong
@stillgray
·
1h
Senior Biden economic adviser Gene Sperling has just quit. That's probably not a good sign for the economy.

[LMAO]

Houses and land are insanely high,  but I do think though we will see a real estate bubble that will burst.  Those that bought homes or re-financed when mortgage interest rates were low, will do fine. 

How are those starting out able to afford housing?? Sellers right now are lowering prices, but even at that it takes a heavy down stroke to get into a home and on top of that high interest rates; but nothing like the interest rates under Carter (yet). Rent is the same way; first month, last month and security deposit; all add up to a hefty sum.

Those high interest rates of the late 1970s to the early 80s was Vockler(sp) slowing down the economy to bring down inflation.

If the presidential election took place in 1982 instead of 1984, Reagan would have been a one term president. His JAR was in the toilet. If I remember correctly, there were some Republicans that thought Reagan should dump Vockler at that time

Who can forget the government cheese? I actually thought it was good.

[Wingnut]

Ian Miles Cheong
@stillgray
·
1h
Senior Biden economic adviser Gene Sperling has just quit. That's probably not a good sign for the economy.

Rats always leave a sinking ship first.  Look for Biden to resign and stick Heels-Up with the disaster.

[mystery-ak]

https://twitter.com/DailyCaller/status/1820468720013377985

[mystery-ak]

https://twitter.com/TONYxTWO/status/1820472757471068276

[mystery-ak]

https://twitter.com/joma_gc/status/1820454442350833876

[mystery-ak]

https://twitter.com/kylenabecker/status/1820459648467476525

[mystery-ak]

Guy Benson
@guypbenson
·
1m
‘In an email to the New York Times, a Harris campaign aide said the Vice President has never heard of Bidenomics and will not be commenting further on the matter. When pressed, the aide referred the Times to a video of celebrity supporters singing ‘Imagine’ direct to camera.’

[mystery-ak]

https://twitter.com/RepMTG/status/1820467646426382576

[mystery-ak]

https://twitter.com/kylenabecker/status/1820477882004582909

[mystery-ak]

https://twitter.com/MAGAgpsmith/status/1820463153274409165

[mystery-ak]

I would like to know too!

Wendy Patterson
@wendyp4545
·
2h
Can anyone check how many members of Congress sold their stock in the last 2 weeks?

[mystery-ak]

https://twitter.com/charliespiering/status/1820455701023424958

[mountaineer]

I would like to know too!

Wendy Patterson
@wendyp4545
·
2h
Can anyone check how many members of Congress sold their stock in the last 2 weeks?

You can bet the Pelosis protected themselves.

[mystery-ak]

Charles Gasparino
@CGasparino
·
14m
With all the economic upheaval and an opponent who is utterly clueless about how to address it,  @realDonaldTrump
 will really have to bleep this up not to win in November, do or say something really dumb, which is a possibility as we all know

[LMAO]

I would like to know too!

Wendy Patterson
@wendyp4545
·
2h
Can anyone check how many members of Congress sold their stock in the last 2 weeks?

lol


Good question

[mystery-ak]

Wendy Patterson
@wendyp4545
·
5m
This is all on Biden, Harris, Powell and Yellen

Inflation is up 21.1% while real wages are down 1.9%

Those jobs they boasted about for several months were part time and government jobs that went to the criminal illegal aliens while American born lost jobs in the millions.