Looking around, I was surprised to see the overall drop on all the markets, including my stocks there near the close. I don’t see any particular event, so what spooked the Market?
I don’t see any particular event, so what spooked the Market?
As offered before, the markets, like the media, move on hype and hysteria.
Want something tangible? Unemployment claims rose, some 228,000 for the last week. Powell will probably privately say “mission accomplished” as rising unemployment will “fight inflation” by giving the “JCs” leverage to cut wages, while still leveraging media “shortage” hysteria to maintain prices.
Steve
The European Central Bank said Thursday it would increase its key interest rate from minus 0.5% to zero or higher by September, and probably further after that. The central bank indicated that it plans to start with a quarter-percentage-point increase in July. It also said it would end its large-scale bond-buying program on July 1.
In both the U.S. and Europe, the announcement sent stocks falling. The pan-continental Stoxx Europe 600 closed down almost 1.4%.
https://www.wsj.com/articles/global-stocks-markets-dow-updat…
It’s not like this should be a surprise, give high inflation in Europe as well as the U.S.
Nobody knows yet whether inflation will be high and the Fed will raise rates in September, not even the Fed itself. Traders are rightfully nervous. Don’t be surprised to see a big drop in the markets if the inflation report doesn’t show dramatic improvement. (Which it won’t.)
Wendy
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Thanks Wendy,
And there I was, thinking it was just another relatively quiet day, mostly prepping for this evenings hearings, so I wasn’t watching the markets… Oops…
weco
Hooked on AAPL, T, VZ mainly… all buy & holds… Dividends!!
I think the oligarchs are upset about what is going to come out tonight and over the next few weeks.
what spooked the Market?
The inflation report tomorrow is perceived to be very important. And some people are afraid that it will be “too high” for comfort. So they sold today and will reevaluate tomorrow morning. Basically, if the number is appreciably below 8%, they will buy en masse and the market will shoot up tomorrow, but if the number is appreciably above 8%, well … I suppose we can only wait and see.
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so what spooked the Market?
Giverment bureaucrats who produce nothing, get huge salaries, travel worldwide enjoying ‘Wine Wo/men and Song’ at your expense, and say and do spooky things. LOL
The Captain
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Looks like it was appreciably about the magic 8% number. And it is the recent high. So … inflation is still here and apparently still rising. Oh well.
*above
I have no certified data on hand - but there are an awful lot of capital projects being
canceled or placed on hold. I understand the Chinese are considering reopening some
coal fired power plants. Rumors are turning quite negative.
Howie52
Predicting the future is difficult.
Predicting what the market reaction to the future is impossible.
Predicting what the pundits will say doesn’t really matter in the least.
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Predicting the future is difficult.
Predicting the future is easy. Getting it right is difficult.
The Captain
Mark Twain said that quitting smoking is easy. He did it daily!
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