HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Dow tumbles 1,000 points,...

Thu May 5, 2022, 04:45 PM

Dow tumbles 1,000 points, Nasdaq loses 5 percent in worst day since 2020

Source: NBC News

Stocks suffered their worst day of the year on Thursday, pulling back sharply and completely erasing a rally from the prior session in a stunning reversal that deepened the marketís losses for 2022.

The Dow Jones Industrial Average lost 1,120 points, or 3.3 percent. The S&P 500 and Nasdaq Composite fell 3.7 percent and 5.2 percent, respectively.

The moves come after a major rally for stocks on Wednesday. The Dow surged 932 points, or 2.81 percent, and the S&P 500 gained 2.99 percent for their biggest gains since 2020. The Nasdaq Composite jumped 3.19 percent.

Those gains had all been erased before noon in New York on Thursday.
ďIf you go up 3 percent and then you give up half a percent the next day, thatís pretty normal stuff. ... But having the kind of day we had yesterday and then seeing it 100 percent reversed within half a day is just truly extraordinary,Ē said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.


Read more: https://www.nbcnews.com/business/markets/markets-tumble-day-after-federal-reserve-interest-rate-hike-rcna27513?share=facebook

24 replies, 2269 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 24 replies Author Time Post
Reply Dow tumbles 1,000 points, Nasdaq loses 5 percent in worst day since 2020 (Original post)
bluewater May 2022 OP
yaesu May 2022 #1
empedocles May 2022 #2
AZLD4Candidate May 2022 #3
multigraincracker May 2022 #6
Doodley May 2022 #8
AZLD4Candidate May 2022 #10
Doodley May 2022 #12
AZLD4Candidate May 2022 #13
TheProle May 2022 #24
progree May 2022 #14
mahatmakanejeeves May 2022 #22
bucolic_frolic May 2022 #4
Warpy May 2022 #5
BumRushDaShow May 2022 #7
Warpy May 2022 #11
BumRushDaShow May 2022 #15
progree May 2022 #9
BumRushDaShow May 2022 #16
progree May 2022 #17
BumRushDaShow May 2022 #18
Calista241 May 2022 #19
mahatmakanejeeves May 2022 #23
ck4829 May 2022 #20
Sick_n_Tired May 2022 #21

Response to bluewater (Original post)

Thu May 5, 2022, 04:51 PM

1. WTF? I just ordered my DOW 40K hat 😭😭😭

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Thu May 5, 2022, 04:56 PM

2. ' . . . seeing it [the big gain] 100 Percent reversed within half a day . . . '

suggests some big, fast money made on those moves. Some made big money going up, and also may have made big money going down.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Thu May 5, 2022, 04:58 PM

3. Stock markets do not assess a functioning economy since only the investor class is affected

We are going through a correction now.

If buybacks and stock speculation weren't allowed, it wouldn't be as harsh of a correction.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to AZLD4Candidate (Reply #3)

Thu May 5, 2022, 05:11 PM

6. Ban buybacks or at least

tax them at 50%. Of course CEO get most of their compensation in shares, of course they want those shares to go up.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to AZLD4Candidate (Reply #3)

Thu May 5, 2022, 06:30 PM

8. i wouldn't say I'm "the investor class." My pension from my less-than-average pay job has been hit

badly.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Doodley (Reply #8)

Thu May 5, 2022, 06:31 PM

10. You are a small time player. That's not what I mean by investor class.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to AZLD4Candidate (Reply #10)

Thu May 5, 2022, 06:34 PM

12. "....only the investor class is affected"

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Doodley (Reply #12)

Thu May 5, 2022, 06:37 PM

13. I'm shutting this down. I am not going to engage in this.

If you feel slighted, my apologies. I stand by my response. I am not going to engage in an argument here. I will not go down that rabbit hole.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to AZLD4Candidate (Reply #13)

Fri May 6, 2022, 12:32 PM

24. You're welcome to take your toys and go home

but your response is tone-deaf. The market is more than just a playground for big-time investors. Millions have pension/retirement plans tied to the market.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to AZLD4Candidate (Reply #3)

Thu May 5, 2022, 06:38 PM

14. When a rich person loses half their net worth, it doesn't affect their lifestyle at all

the remaining half of their wealth is more than they know what to do with.

When a regular person loses half their savings, it sometimes means they can't retire when they planned to. Or there's not enough money for higher education for the children.

Also, sustained stock market declines adversely affect consumer and business confidence, resulting in a reduction in spending with ripple effects throughout the economy, causing slowdowns, reduced hiring, and sometimes recessions, that affect all people, hurting those with the least the most.

The stock market is a leading indicator. All recessions that I've looked at began with a severe stock market downturn several months before the GDP and employment downturns began. Similarly, most or all economic recoveries were preceded by stock market upturns.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to AZLD4Candidate (Reply #3)

Fri May 6, 2022, 05:58 AM

22. The "investor class" includes union members, whose pension funds

are invested in various bundles of stocks or bonds.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Thu May 5, 2022, 05:02 PM

4. It's on

Suddenly, investors will want to feel safe. No telling where that level is.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Thu May 5, 2022, 05:10 PM

5. It was up, what 784 yesterday?

Anybody who thought it was going to hang onto that was trying to sell you something you should never buy.

There have been big daily drops followed by bargain hunter days. The bargain hunters are not coming out like they used to. All that stolen payroll protection money has dried up. We're deep into correction territory.

Remember, the worst reason to make any decision is panic.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Warpy (Reply #5)

Thu May 5, 2022, 05:37 PM

7. Dow closed up 932 yesterday

4:07 p.m. ET, May 4, 2022
Dow surges more than 900 points for its best day in 2 years

From CNN Business' Nicole Goodkind

US markets rallied sharply on Wednesday, posting their best day in two years, after the Federal Reserve Chair Jerome Powell announced a half-point rate hike but assured investors that even bigger rate hikes are "not something the [Fed] is actively considering."

(snip)

The Dow closed 932 higher, rising 2.8%. That was the index's best day since November 9, 2020.

https://www.cnn.com/business/live-news/stock-market-news-fed-rate/index.html


So the 2-day net was -188.



Reply to this post

Back to top Alert abuse Link here Permalink


Response to BumRushDaShow (Reply #7)

Thu May 5, 2022, 06:31 PM

11. Thanks, I didn't check much after noon MDT, I guess

Day to day stuff doesn't interest me all that much, although it's fun to hear what fiction the talking heads can come up with to explain it.

This was fairly obvious, half a point in interest rates means the end of the world as we know it.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Warpy (Reply #11)

Thu May 5, 2022, 07:16 PM

15. I usually pop the local news radio station on here 3 pm ET (my time)

and get a summary of the news so I still have it on when the markets close and heard the business anchor mention that it had been up to near 1000 points yesterday just before the close. I know they still do the final tally after the bell but finally found what they closed at.

Yesterday was when the the rate increase had been announced and I was somewhat surprised at them shooting the market up like that. Then today the market went into reverse so that told me that people were buying up some stocks to run up the price yesterday so they could "sell high" today to eventually buy something else later, thus rejiggering their portfolios.

Tomorrow the UE rate for April comes out so who knows which way it will go. I do know the analysts will probably do a swing and miss on the jobs report estimates like they have done every month the past year, so....

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Thu May 5, 2022, 06:30 PM

9. S&P 500 is down 13.6% from its Jan 3 all time high (4797), and down 13.0% year-to-date

Reply to this post

Back to top Alert abuse Link here Permalink


Response to progree (Reply #9)

Thu May 5, 2022, 07:18 PM

16. Yeah they have been pretty consistent noting that they have been in a bear market territory

recently.

These markets DO have to "correct" every once in awhile.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to BumRushDaShow (Reply #16)

Thu May 5, 2022, 07:44 PM

17. Are they talking bear market? I thought 10% down was a correction and 20% down was a bear

market, but I don't know how standard that is.

Hope not. Having my equites down by 20% on top of my FIXED DOLLAR annuity (half my regular income) eroding with inflation like crazy is getting depressing.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to progree (Reply #17)

Thu May 5, 2022, 08:11 PM

18. Well that's why the reports couched it with that term "territory"

because it wasn't there yet but the signs didn't seem to point to suddenly emerging from it to go bullish... I suppose it could tip either way depending on what happens with the supply disruptions (especially with China and lockdowns) and they are factoring in Ukraine - mainly because of the commodities disruptions.

The S&P has a broader range of stocks so it seems more concerning than say the NASDAQ, as that seems to be tied to the tech disruptions due to the chip shortages.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Thu May 5, 2022, 09:01 PM

19. There's a metric shitload of middle class voters out there with their meager

retirement savings in 401k's and other stock market investments. This stock market drop, if it continues, is going to eliminate any chance of success for the Dems to save the House or the Senate.

The S&P 500 is down 13%, the NASDAQ is down 13.8%, and the DOW is down nearly 10% so far in 2022. We also had negative GDP growth in Q1, and inflation is at a 40 year high.

This is a recipe for an epic disaster in November. Everyone here is all fired up about abortion, the Supreme Court, voting rights, and Build Back Better, but none of that will matter in the slightest if this economy continues on its current path.

The Fed will try to save us, but it also predicted that inflation was transitory for all of last year, and it's still here and getting worse. When do we hit the panic button?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Calista241 (Reply #19)

Fri May 6, 2022, 06:00 AM

23. That's a bingo.

This is a recipe for an epic disaster in November. Everyone here is all fired up about abortion, the Supreme Court, voting rights, and Build Back Better, but none of that will matter in the slightest if this economy continues on its current path.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Fri May 6, 2022, 05:19 AM

20. Sad.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Fri May 6, 2022, 05:45 AM

21. Intentional

Likely an intentional sell off by the oligarchs to take attention away from Roe and shift focus back to the economy and inflation. Since Monday itís been nonstop news about what the end of Roe means and it paints the repubes in a bad light. Letting the market crash (temporarily as the oligarchs will always get their money back plus some) shifts the story away.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread