The stock market swung nearly 2% between 2 pm and 3:15, although it is slightly off the day’s lows. The triple-whammy curse remains in effect. Tech valuations continue to plunge, with Facebook down about 2.5%, and the China-dependent memory companies (Micron and Western Digital) down 6% to 8%.
Banks continue to plunge as investors give up hope of a bearish steeping in the yield curve (good for bank interest margins). Bank of America and Morgan Stanley are the two worst performers in the S&P 100, down more than 4%. And of course trade-war threats continue to weigh on the market.
The biggest winners are defense and oil companies (with the John Bolton appointment investors seem to believe that the Middle East will blow up and the US will buy more hardware).
Do NOT buy the dip:
Trump wants this shock of market, and won’t last long for sure. Just like he ordered the US embassy to move to Israel’s new capital to win over American Jewish group, he wants this trade war with China to fix the support of his twitter fans. Thous fans are low income white people, who think China has stoles their jobs and pressed their wage levels down. Well, th middle term election is coming, Trump needs to win the election to prepare for his second term election. But the trade war hurts
business American people, so after the election he has to relax a bit .