Stock Market Sending A No-Confidence Signal

[FrankTC]

The evisceration of the Dow today, after a 9-day losing streak, cannot be interpreted as investors feeling optimistic about the future. Especially since the Fed's prediction of only two interest rate cuts next year suggest a concern that inflation will not subside. Indeed the Fed raised its forecast of end-of-2025 inflation nearly a half point, clearly taking into account economists' expectations for the combined effects of tariffs and tax cuts. Way to go, Donnie! He hasn't even been sworn in yet and the rubble is already accumulating.

[The Madcap]

1. A crash

Is much more likely under T****. Markets like stability, not random madness.

[Yavin4]

13. Having Trump as president is like being in a body without an immune system...

and you're not taking any medication or measures to protect yourself. Nope, you're out there in the wind and any pathogen can kill you. Any foreign or domestic adverse event can cause us to collapse because we have absolute fools running important areas of the govt.

[Fiendish Thingy]

2. A 2.5% drop isn't even considered a correction

The market is still up 12.5% for the year, and there’s still two weeks to go.

We shall see.

[spooky3]

6. That's true for the Dow -- other indexes are up at varying rates. But the key point is that this 2.5% comes on top of 9

consecutive prior declines. It usually doesn't help to look at one day in isolation. Two weeks ago, the Dow was over 45000. Now it's nearing 42000--more than a 6.5% drop in two weeks. And Trump wants to take credit for any good economic news. Well then, he owns this drop, too.

[Fiendish Thingy]

9. I'm not worried

After an extended period of record setting highs, A drop has been expected for some time now.

[spooky3]

12. The Dow reacts to possible govt shutdown:

https://bsky.app/profile/katelynburns.com/post/3ldmdz5pqhk25

[The Madcap]

15. Ageed

But it is the incompetence in the incoming cabal that I think will cause the downturn.

[Turbineguy]

3. Aftermarket is up

I'm back to where I was in September.

You know, back when we were winning the election.

[B.See]

4. Ten of the last eleven recessions

Happened under a Republican administration.

Yet bamboozled voters keep putting faith in their leading a strong economy.

Afterwhich Democrats have to come in and clean up THEIR mess.

Only this time, there may be no afterwhich.

Because ignorance is BLISS.

[ZonkerHarris]

5. Trump is breeding uncertainty into the market and traders hate that. Tariffs, deportations all affect business

and until they know, doubters will win

[Trekologer]

16. I presume that the rise after the election was in anticipation of tax cuts

But the slide over the past couple days was realization that Trump actually intends to go through with all the destructive stuff that people convinced themselves was just bluster.

[ZonkerHarris]

18. the smartest people don't realize just how utterly stupid Donald Trump actually is in real life. Big Rock dumb.

[Wiz Imp]

7. As of now, we're looking at a likely Federal Government shutdown which will last at least a month

I can't imagine the stock market will respond overly positively to that.

[jmbar2]

8. This is an expected pullback, although made deeper by Elon's last minute ratf*ckery on the CR

The market is cyclic and has pullbacks on a pretty predictable timeframe. This has been expected by those who follow market cycles.

Another factor is that Powell said the Fed will not be buying crypto. The CryptoBros have been pumping the market with the idea of the Strategic BitCoin Reserve. Powell's statement was a bit of a rug pull for crypto stocks.

Once the shock wears off, it will shoot back up. Then Trump will take credit for it.

Here is a clip from a cycle analyst (see 8 minute mark)

[Aussie105]

10. I'm watching the Australian stock market closely.

Why I hear you ask?
Just that my retirement pot of gold is closely tied to it, a 2% drop in the ASX200 reliably translates to an AU $3K drop.

It was going well - too well - earlier in the financial year, and I was expecting a downturn to start a few weeks back.

Well, it is happening at the moment.

This may be just a pre Xmas slump, or the start of a 10% correction.
Or worse.
Time will tell.

Unfortunately the stock markets hate unpredictability, and usually expect the worst.

[JMCKUSICK]

11. Don't you mean Ruble?

Snark intended

[Aussie105]

14. Your Snarky McSnark-Snark is NOT appreciated!

Trump is already costing me money, and I'm not even in America and he isn't POTUS yet!
How much worse will it get?

[Takket]

17. trump will just fire them all, order interest rates to 0, and say these is no inflation

and the media will report that and people will believe it, as their grocery bill skyrockets.