The market is red and please pay attention. Yes, the world may be at the early phase of stock market correction.
The last major global correction was in 2008. Another was coming in 2020, but we disintermediated it with stimulus packages, flipping scarcity with artificial abundance. Now that Biden is not on the ticket, I am not sure he has any personal political survival interest to delay the inevitable. Simply, do not expect any quantitative easing: this stock routing may take its full course.
Look at your job and pay attention because the first phase is always using hard working people to try to fight Wall Street, as Intel just did by firing 15,000 people. Snap, the parent of SnapChat, is largely lost now, and is in big trouble.
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Bank stocks may also be in the crosshairs considering that many commercial real estate deals are expected to go bad, and if this recession hits, residential mortgages and credit cards will follow. Shine your eyes and stop any fandom spending and conserve cash!
These are trending topics on X (Twitter) which do indicate that markets may be heading for correction.
On August 2, 2024, global financial markets experienced a significant downturn, with over $2.9 trillion wiped out from stocks due to growing fears of a global recession. This marked the worst day for stocks since the COVID-19 pandemic crash in March 2020. The volatility index (VIX) spiked by 54%, one of the largest one-day moves in history, indicating heightened market uncertainty. The U.S. unemployment rate rose to 4.3% in July, with only 114,000 jobs added, both figures falling short of expectations. Gold prices hit a record high as investors sought safe-haven assets amidst economic instability and corporate earnings concerns.
The S&P 500 (SPX) experienced a significant downturn, dropping 4.5% from the July 24th gap, sparking discussions among market analysts and traders. The VIX, a volatility index, surged by 13.7 points from its low on August 1st, reaching its peak on August 2nd, a level last seen in January 2022, January 2021, and June 2020. Despite the downturn, the S&P 500 is still up by nearly 13% year-to-date. Market participants are closely monitoring support levels and potential targets for the SPX, with key levels identified at 524, 5150, and 5200. Opinions among traders vary, with some anticipating a bounce back while others expect further declines.
The U.S. unemployment rate rose to 4.3% in July, marking a significant increase from the previous month and reaching the highest level since October 2021. This surge in unemployment was accompanied by a slowdown in job growth, with only 114,000 jobs added in July, significantly below the forecasted 175,000 gain. The labor market’s cooling has raised concerns about the economy’s vulnerability to a recession, with some sources suggesting that the unemployment rate may be higher than officially reported. The Federal Reserve’s future actions regarding interest rates are being closely watched in light of these developments.
On August 2, 2024, U.S. stocks experienced a significant downturn, marking the worst session since 2022. The decline was triggered by a weaker-than-expected U.S. jobs report for July, which indicated a slowdown in hiring and an increase in the unemployment rate to 4.3%, the highest in nearly three years. Major indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, saw substantial drops. The losses were substantial, with over $2.9 trillion wiped out from major indices and stocks, marking the worst day for stocks since March 16, 2020, during the COVID-19 pandemic. This event has heightened fears of a potential recession and has led to significant market volatility.
On August 2, 2024, the financial markets experienced significant movements in various commodities. Silver, gold, and platinum saw gains, with silver being the only asset in the green for the day. Crude oil prices plummeted to an 8-month low, influenced by weak US jobs data and concerns over Chinese economic performance and global manufacturing slowdowns. Grain markets ended the week on a mixed note, with corn, soybeans, and wheat closing higher, while cattle and hog futures ended lower. The financial community closely monitored these developments, reflecting on the implications for global economic health and market stability.
Over $2.9 trillion has been wiped out from major indices and stocks this morning due to growing fears of a global recession.
This is the worst day for stocks since March 16, 2020, during the COVID-19 pandemic fears.
Intel experienced its worst trading day in 50 years, with its stock price plummeting by 26% after announcing a 15% workforce reduction, affecting 15,000 employees. This move is part of a cost-cutting strategy aimed at saving $10 billion by 2025. The company’s struggles are attributed to its inability to compete effectively in the AI chip sector, where rivals like Nvidia have gained significant market advantage. Additionally, Intel’s failure to develop and produce 7nm chips has been highlighted as a contributing factor to its declining market position. The layoffs and financial challenges come despite Intel receiving an $8.5 billion grant from the Chips Act, which was intended to bolster the semiconductor industry in the United States.
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What does Nigeria stand in all of these? We weren’t flying before, maybe we could fly when others are hunkering down. Let food prices crash locally too, that would be a win.