Dow falls more than 600 points, S&P 500 tumbles below 4,000 to the lowest level in a year

[bluewater]

Source: CNBC

Stocks fell sharply Monday, pushing the S&P 500 to breach the 4,000 level for the first time in more than a year as the market sell-off continued.

The Dow Jones Industrial Average dropped 653.67 points to 32,245.70, or 1.99%. The S&P 500 fell 3.2% to settle at 3,991.24, while the Nasdaq Composite lost 4.29% to 11,623.25.

The S&P 500 traded as low as 3,975.48 on the day, dipping below the 4,000 mark to its lowest level since March 2021 and pulling back 17% from a 52-week high as traders struggled to bounce back from last week’s big market swings. All sectors except for consumer staples dipped into the red.
...
“This is significant repricing, this is significant dislocation and this is all being spurred and driven by Federal Reserve policy,” said Jeff Kilburg of Sanctuary Wealth. “The only way I see us finding the bottom in equities short-term, the only way I see markets healing is if the Fed has the ability with the tools in their toolbox to calm down interest rates. The 10-year note needs to go back under 3%.”

Read more: https://www.cnbc.com/2022/05/08/stock-futures-fall-as-wall-street-looks-to-stabilize-after-rollercoaster-week.html

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“This is significant repricing, this is significant dislocation and this is all being spurred and driven by Federal Reserve policy,” said Jeff Kilburg of Sanctuary Wealth. “The only way I see us finding the bottom in equities short-term, the only way I see markets healing is if the Fed has the ability with the tools in their toolbox to calm down interest rates. The 10-year note needs to go back under 3%.”

[spooky3]

1. I'm no expert but I think the Fed is only one factor.

As long as the Ukraine invasion continues, people are going to be worried that it may escalate, and supplies will be disrupted.

The pandemic continues, and China’s lockdown also disrupts supply chains.

Etc.

[hueymahl]

17. It's the fed

99%

Ukraine is a small distraction (currently).

China a little more.

But vast majority is the fed, who are corrupt/incompetent assholes protecting big banks at the expense of everyone else.

[spooky3]

18. Obviously, I disagree. Nt

[XanaDUer2]

2. Fuck

[IronLionZion]

3. Many stocks were way too dependent on low rates and overvalued

so tech and other growth stocks were due for a correction. Energy and travel are riding high.

I would like the Fed to keep raising rates to bring down inflation.

[Haggard Celine]

6. I agree.

Inflation needs to be brought back under control. It's hurting average people more than anyone else.

[progree]

4. S&P 500 still 5.1% above failed coup guy's last close, Jan 19, 2021

S&P 500 closing values:
1/19/21:   3799
5/09/22:   3991

And this doesn't count dividends (that was about 1.4%)

but one of our talking points is vanishing.

It's down 16.8% from the all-time-high close of 4797 on 1/3/22
(bear markets begin at 20% down)

[MichMan]

9. Grew less than half of inflation since Jan 2021

So really a loss

[progree]

12. Yeah, I think about that a lot. And then my bond funds going down in nominal terms and

losing even more so to inflation.

And then there is half my regular retirement income, a FIXED DOLLAR annuity, that I always knew was going to slowly erode with inflation, well not so slowly now. If inflation were to, for example, average 7%, it would lose half its purchasing power in 10 years and be down to 1/4 of its purchasing power in 20 years.

CPI report comes out Wednesday, PPI report Thursday

[TheBlackAdder]

5. My ARM just recalculated, and went up by the 2% cap, adding another $1,400 a year I pay.

[madville]

8. Ouch

Not many were predicting inflation coming on this strong and fast (except the regular broken clocks). I did a fixed rate mortgage at 3.125% but could have done an ARM at around 2.5% at the time, glad I went fixed now.

[madville]

7. Good buying opportunities and don't panic sell

It will bounce back, always does.

[twodogsbarking]

11. So far.

[IronLionZion]

14. I've increased my 401K contributions

this is a good time to invest for income as cash rich companies will still pay dividends

[madville]

26. I still have 10-15 years to invest

I like my job and benefits, will work until 60-65 easily as long as I still have my health. I don’t care what the markets do this year or 5 years from now, I’m looking more long term. If it goes down in the short term I just will try to buy more…

[24601]

22. You're absolutely right. When I was in grad school, I was able to take a one-credit course on

investing strategies. Our instructor was a retired broker that offered his observations.

The vast majority of amateur investors will almost always act too late, thereby selling low and buying high.
and
Bulls make money, bears make money, pigs get slaughtered.


Another friend offered a sure-fire way to make a small fortune in the stock market:

Step one, start with a large fortune....

[bucolic_frolic]

10. Fed has propped up the house of cards for 35 years

Never a cyclical recession and cleansing. Always a crash or sector implosion followed by monetary injections. With Covid, Congress took up the play. Now they choose - destroy the currency or tank the economy with sharp recession.

There are no buyers. Every uptick meets a seller. Equities and bonds are toxic at this juncture. No where to hide.

[Turbineguy]

13. If I were one of the surgeons operating on Putin,

I'd start buying.

[867-5309.]

15. We need better news for the mid-terms

This does not help.

[edhopper]

16. Companies can't borrow their way to growth anymore.

The Fed should have taken the punch bowl away a while ago.

[Evolve Dammit]

19. I got out when Orange Julius was threatening "fire and fury like the world has never seen."

[progree]

20. From Aug 8, 2017 to today's close, the Total U.S. stock market increased 1.69-fold

which is a 11.67% annualized rate of return (as measured by the Vanguard Total Stock Market Index Fund (VTSMX); these numbers include reinvested distributions)

Meaning for example, $10,000 invested then would be worth $16,900 now.

https://finance.yahoo.com/quote/VTSMX/history?p=VTSMX

Aug 8, 2017 was the day of the "Fire and Fury" remark.

[Aussie105]

21. What, me worry?

It's out of my control, losing sleep over it won't help.

Yes, I'm losing money. Drip, drip, daily erosion.

I won't even bother to ask the 'Why?' question or the other question, 'Who is to blame?'.

It will come good, no problems.

[Loki Liesmith]

23. Might be time for me to make a significant buy.

[Bengus81]

24. And....when it goes back up 600 points today or the next there will be...silence

Always is.......

[Bengus81]

25. Food and gas prices are the REAL INFLATION,what are the Feds doing about that??

Nothing but jacking interest rates on the people who can least afford them. Raising the rates by 3/4 of a point does NOTHING about $4-$5 gas prices and RIP OFF prices at MEGA food stores that are for the most part a monopoly run by Kroger.