Dow, S&P 500 mark worst start to a quarter since 2008 financial crisis as recession fears accelerate
S E E D E D C O N T E N T
Graphic credit: Busy.org
U.S. equity markets on Wednesday were ensnared in a two-day tailspin that has pushed the benchmark indexes to one of the worst starts to a quarter since the 2008-09 financial crisis.
The Dow Jones Industrial Average DJIA, -1.86% , was down more than 500 points , or 1.9%, at 26,078, with a two-session skid of more than 3%, representing the worst start to a quarter since the last three months of 2008, when the Dow slumped 19.4% in the fourth quarter, according to Dow Jones Market Data.
Meanwhile, the broader market notched its worst start to a quarter in about a decade, with trading in the first two sessions in October putting the S&P 500 index SPX, -1.79% driving the broad-market benchmark to a loss of about 3% to start the quarter, which would represent its worst such start since a 5.49% skid in fourth quarter of 2009.
Related: Trump Hits New All Time Low In CNBC Poll
Tags
Who is online
74 visitors
The Nasdaq Composite Index COMP, -1.56%, down 2.7% so far in October, and the Russell 2000 index RUT, -0.92%, off 3.1%, also marked their worst starts to the quarter since 2009.
Reflecting the slump in the equity indexes, one reading of implied stock-market volatility, the Cboe Volatility Index VIX, +10.78%, a gauge of bullish and bearish S&P 500 options bets that tends to rise as stocks fall, was on pace for its biggest rise to a quarter on record.
Helping to stoke bearish sentiment on Wednesday was a private-sector employment report from Automatic Data Processing ADP, -2.37%, which showed that a modest 135,000 jobs were created in September, in another sign that hiring is slowing along with the broader U.S. economy.
The data comes a day after the Institute for Supply Management’s manufacturing survey produced its worst reading since 2009.
Anyone remember these "words of wisdom?
Trump said trade wars were ‘good’ and ‘easy to win’
Some of Donald Trump’s tweets are more important than others. A year and a half ago, the president declared that the United States is “losing many billions of dollars” on trade, which reflected a degree of confusion about how the economy works. The differences between trade deficits and “losing money” matter – and are obvious to those with a basic familiarity with the issue.
But Trump quickly added on March 2, 2018, “[T]rade wars are good, and easy to win.”
I wonder if he still believes that. (Read it all)
I guess conservatives finally have their man like Herbert Hoover, again...
I guess conservatives finally have their man like Herbert Hoover, again...
Must be that conservatives are a nostalgic lot!
The Hoover we all fondly remember:
The younger Hoover (actual unretouched photo):
I just checked and nobody is buying Glen Miller records...yet!
Don't forget The Hoover Damn. Grandpa always said, "DAMN HOOVER!"
I actually have an old Glenn Miller CD-- great hi energy music,
Those were the days!
2019 is starting to look a lot like 1929...
No. It isn't. That's just silly.
Slowly they grow. Step by step. Inch by inch. Then... POP goes the bubble!
Trump has done everything he can to artificially goose the economy upward.
And that can definitely work-- for a while.
But it can't last forever-- and eventually the bubble pops.
(ironically that's been one of his main "selling points"-- that's he's going to be great for the economy.
Looks like he may not have thatto use as a campaign issue soon...
(And then there's the Impeachment situation...and North Korea which starting launching missle tests again...Iran stepping up enrichhment of Uranium since trump went back on our treaty obligation...etc, etc)
YES and when the recession hits there will be nothing to do for it...
They surely cannot cut taxes with the deficit already over a trillion $.
We never went into recessions already suffering trillion $ deficits.
Item 1: It's not a bubble. It's a regular cycle.
Item 2: The primary tool for combating a recession is interest rates, not tax cuts.
Item 3: Interest rates are not within the control of the presidency.
The DOW is down 5%. We are already in 1/2 a recession.
The plutocrats won't suffer. And that is all that matters, right?
After all, a recession when you have hundreds of millions stashed here and there versus the average bloke that lives paycheck to paycheck are simply not the same thing, right?
MAGA. Is the plan all along?
Actually the very rich who are liquid and have credit always clean up during recessions. That is when they can buy stocks, real estate and small businesses for mere pennies on the dollar...
It is overextended middle class working people who lose their jobs, homes and retirement accounts.
Define "rich". How much money are we talking about?
Operative word being "overextended", which was their own series of decisions.
Do you understand what a "recession" actually is?
On a more concise question, I honestly wonder ( just exactly what it was ) that was keeping the markets afloat for the past year and half?
Honestly, were tax cuts, deregulation and further automation the drivers? Or------was it the debt and deficits and the opportunity provided to the ultra wealthy for the next 'shakedown' of America and Americans?
Put simply, there are only two ways to stimulate an economy.
1. CUT TAXES
2. INCREASE SPENDING
The tools governments normally use to stimulate a stalled economy are not available to us now because Trump and the damn gop indulged themselves with massive tax cuts and wildass spending programs. (See The Wall and US Military) during relatively good economic times resulting in another bubble. When the bubble bursts there will be nothing to do for it...this time.
Bill Clinton said it best, "Economics is just math". The gop didn't believe it..
The gop has our farm on their supply side trickle down voodoo economic pipe dream, again. Now Trump came along to blow the whole thing up...
Stay liquid and try to get out of debt is the best advice I have for everyone.
Because interest rate cuts and quantitative easing only exist at Hogwarts.
"Wall Street’s fear index on pace for biggest rise to start a quarter on record"
Gotta love these type headlines !
Lets form a drum circle and just "cause" a recession !
Even an 800 point drop, didn't put a dent in what people, that are in the stock market, already made so far.
It's all just HYPE !
My Wife and my 401K made a shit load, even with the drop. I'm STILL a happy camper. My Business is booming.
Don't fuck this up for me and my wife, with MORE ridicules Hyperbole. Sheeeeeesh !
Yes this turned out to be bullcrap.
Anyone happen to notice that the article was published on October 3, 2019? Old news isn't newsworthy.