Dow, S&P 500 mark worst start to a quarter since 2008 financial crisis as recession fears accelerate

  
Via:  krishna  •  2 months ago  •  28 comments

Dow, S&P 500 mark worst start to a quarter since 2008 financial crisis as recession fears accelerate
Wall Street’s fear index on pace for biggest rise to start a quarter on record

S E E D E D   C O N T E N T


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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


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Krishna
1  seeder  Krishna    2 months ago

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.

 
 
 
Krishna
2  seeder  Krishna    2 months ago

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.

 
 
 
Krishna
3  seeder  Krishna    2 months ago

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)

 
 
 
JBB
4  JBB    2 months ago

I guess conservatives finally have their man like Herbert Hoover, again...

 
 
 
Krishna
4.1  seeder  Krishna  replied to  JBB @4    2 months ago

I guess conservatives finally have their man like Herbert Hoover, again...

Must be that conservatives are a nostalgic lot!

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Krishna
4.1.1  seeder  Krishna  replied to  Krishna @4.1    2 months ago

The Hoover we all fondly remember:

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The younger Hoover (actual unretouched photo):

320

 
 
 
JBB
4.1.2  JBB  replied to  Krishna @4.1    2 months ago

I just checked and nobody is buying Glen Miller records...yet!

 
 
 
JBB
4.1.3  JBB  replied to  Krishna @4.1.1    2 months ago

Don't forget The Hoover Damn. Grandpa always said, "DAMN HOOVER!"

 
 
 
Krishna
4.1.4  seeder  Krishna  replied to  JBB @4.1.2    2 months ago
I just checked and nobody is buying Glen Miller records...yet!

I actually have an old Glenn Miller CD-- great hi energy music,

Those were the days!

 
 
 
JBB
5  JBB    2 months ago

2019 is starting to look a lot like 1929...

 
 
 
Jack_TX
5.1  Jack_TX  replied to  JBB @5    2 months ago
2019 is starting to look a lot like 1929...

No.  It isn't.  That's just silly.

 
 
 
Texan1211
5.2  Texan1211  replied to  JBB @5    2 months ago

You have a real gift for exaggeration.

 
 
 
JBB
6  JBB    2 months ago

Slowly they grow. Step by step. Inch by inch. Then... POP goes the bubble!

 
 
 
Krishna
6.1  seeder  Krishna  replied to  JBB @6    2 months ago

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)

 
 
 
JBB
6.1.1  JBB  replied to  Krishna @6.1    2 months ago

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 $.

 
 
 
Freedom Warrior
6.1.2  Freedom Warrior  replied to  JBB @6.1.1    2 months ago

 Why not. Deficits never stop you Dems from spending money 

 
 
 
JBB
6.1.3  JBB  replied to  Freedom Warrior @6.1.2    2 months ago

We never went into recessions already suffering trillion $ deficits.

 
 
 
Jack_TX
6.1.4  Jack_TX  replied to  JBB @6.1.1    2 months ago

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.

 
 
 
Freedom Warrior
6.1.5  Freedom Warrior  replied to  JBB @6.1.3    2 months ago

So what.  It's obvious you don't care.

 
 
 
JBB
7  JBB    2 months ago

The DOW is down 5%. We are already in 1/2 a recession.

 
 
 
bbl-1
7.1  bbl-1  replied to  JBB @7    2 months ago

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?

 
 
 
JBB
7.1.1  JBB  replied to  bbl-1 @7.1    2 months ago

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.

 
 
 
Jack_TX
7.1.2  Jack_TX  replied to  JBB @7.1.1    2 months ago
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...

Define "rich".  How much money are we talking about?  

It is overextended middle class working people who lose their jobs, homes and retirement accounts.

Operative word being "overextended", which was their own series of decisions.

 
 
 
Jack_TX
7.2  Jack_TX  replied to  JBB @7    2 months ago
The DOW is down 5%. We are already in 1/2 a recession.

Do you understand what a "recession" actually is?

 
 
 
bbl-1
8  bbl-1    2 months ago

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?

 
 
 
JBB
8.1  JBB  replied to  bbl-1 @8    2 months ago

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. 

 
 
 
Jack_TX
8.1.1  Jack_TX  replied to  JBB @8.1    2 months ago
Put simply, there are only two ways to stimulate an economy.

1. CUT TAXES

2. INCREASE SPENDING

Because interest rate cuts and quantitative easing only exist at Hogwarts.

 
 
 
It Is ME
9  It Is ME    2 months ago

"Wall Street’s fear index on pace for biggest rise to start a quarter on record"

Gotta love these type headlines ! jrSmiley_78_smiley_image.gif

Lets form a drum circle and just "cause" a recession ! jrSmiley_100_smiley_image.jpg

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 ! jrSmiley_98_smiley_image.gif

 
 
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