HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Dow falls more than 600 p...

Mon May 9, 2022, 04:06 PM

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

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



“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%.”


26 replies, 2255 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 26 replies Author Time Post
Reply Dow falls more than 600 points, S&P 500 tumbles below 4,000 to the lowest level in a year (Original post)
bluewater May 2022 OP
spooky3 May 2022 #1
hueymahl May 2022 #17
spooky3 May 2022 #18
XanaDUer2 May 2022 #2
IronLionZion May 2022 #3
Haggard Celine May 2022 #6
progree May 2022 #4
MichMan May 2022 #9
progree May 2022 #12
TheBlackAdder May 2022 #5
madville May 2022 #8
madville May 2022 #7
twodogsbarking May 2022 #11
IronLionZion May 2022 #14
madville May 2022 #26
24601 May 2022 #22
bucolic_frolic May 2022 #10
Turbineguy May 2022 #13
867-5309. May 2022 #15
edhopper May 2022 #16
Evolve Dammit May 2022 #19
progree May 2022 #20
Aussie105 May 2022 #21
Loki Liesmith May 2022 #23
Bengus81 May 2022 #24
Bengus81 May 2022 #25

Response to bluewater (Original post)

Mon May 9, 2022, 04:10 PM

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to spooky3 (Reply #1)

Mon May 9, 2022, 06:51 PM

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to hueymahl (Reply #17)

Mon May 9, 2022, 07:33 PM

18. Obviously, I disagree. Nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 04:12 PM

2. Fuck

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 04:19 PM

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to IronLionZion (Reply #3)

Mon May 9, 2022, 04:32 PM

6. I agree.

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

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 04:24 PM

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)

Reply to this post

Back to top Alert abuse Link here Permalink


Response to progree (Reply #4)

Mon May 9, 2022, 04:55 PM

9. Grew less than half of inflation since Jan 2021

So really a loss

Reply to this post

Back to top Alert abuse Link here Permalink


Response to MichMan (Reply #9)

Mon May 9, 2022, 05:07 PM

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

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 04:27 PM

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

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TheBlackAdder (Reply #5)

Mon May 9, 2022, 04:55 PM

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 04:50 PM

7. Good buying opportunities and don't panic sell

It will bounce back, always does.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to madville (Reply #7)

Mon May 9, 2022, 05:02 PM

11. So far.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to madville (Reply #7)

Mon May 9, 2022, 06:11 PM

14. I've increased my 401K contributions

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

Reply to this post

Back to top Alert abuse Link here Permalink


Response to IronLionZion (Reply #14)

Thu May 12, 2022, 09:40 PM

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…

Reply to this post

Back to top Alert abuse Link here Permalink


Response to madville (Reply #7)

Tue May 10, 2022, 04:56 AM

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....

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 04:55 PM

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 05:37 PM

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

I'd start buying.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 06:27 PM

15. We need better news for the mid-terms

 

This does not help.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 06:36 PM

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

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

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Mon May 9, 2022, 08:41 PM

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

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Evolve Dammit (Reply #19)

Mon May 9, 2022, 09:39 PM

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.


Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Tue May 10, 2022, 04:42 AM

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Tue May 10, 2022, 06:24 AM

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

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Tue May 10, 2022, 07:37 AM

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

Always is.......

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bluewater (Original post)

Tue May 10, 2022, 07:40 AM

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.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread