Stocks plunge as weak jobs report, tech woes rattle Wall Street

[+OverSword]

Quote

 

Stocks plunged Monday morning as mounting concerns about the strength of the U.S. economy and the outlook for microchip production shook Wall Street.

The Dow Jones Industrial Average opened with a loss of 1,100 points, dropping 2.8 percent after the opening bell. Dow futures tumbled more than 1,200 points before the market opened.

The tech-heavy Nasdaq composite fell 6.2 percent, and the S&P 500 index sank 4.2 percent after the market opened.

“The U.S. is the locomotive of the global economic train and increasing concern about a slowdown, or possible recession, has markets around the world in turmoil,” wrote Greg McBride, chief financial analyst at Bankrate, in a Monday analysis.

Global markets have been in recoil since Friday after the federal jobs report for July came in far weaker than expected. 

 

Link

[Edumakated]

Time to buy...

Markets go up and down.  Unless you sell, it is just a paper loss.  The historical return is 10%, but there will be periods of losses. 

There will likely be a lot of volatility till until after the election.

[Gromdor]

1 hour ago, Edumakated said:

Time to buy...

Markets go up and down.  Unless you sell, it is just a paper loss.  The historical return is 10%, but there will be periods of losses. 

There will likely be a lot of volatility till until after the election.

I'm with you on this one.  Times like these are the opportunities to "buy low".   

[acidhead]

"I cured the economy." 

-Joe Biden (6 days ago)

He doesn't even know what planet he's on. 

 

[acidhead]

[+DieChecker]

Intel stock tanked (-30% over last week) on bad numbers, and lots of articles on how intel is done. Im here seeing the next gen 1.8A coming out the end and next year these myopic idiots likely won't be saying that any more. 

Intel announced 15% layoffs (17000 employees) to try to stem the sell off, but as this reaction always has, it seems to have failed. 

It is amazing though, since I was planning to leave soon anyway, that the layoff packages give several extra paychecks severance. 

It is true this could be a once in a lifetime buy of tech stocks. Most are down 20% over last three months.

[Unusual Tournament]

A couple of things that need to be said about this supposed stock market crash

1 - U.S. high interest rates were instituted to cool the economy and bring down economic growth. So this is really no great surprise and no reason to think the worst 

2 - unlike the dot.com stock market crash, were companies were losing money, these tech companies are the most profitable companies on the exchanges. They are in need of a correction more than the entire market is headed for a crash.

3 - the markets tanked yesterday because Japan’s fed increased rates which were virtually zero to .25% and signalled it would go high. Basically one big market call by the banks that forced investors and institutions to sell. 
 

The fact the all 3 events occurred at once is what corrected the market. There will not be a crash but an opportunity to buy cheap tech stocks over a period of time. 
 

Real savvy investors will by biotech stocks as they have been overly sold for sometime and will continue to correct slightly more BUT will be the first to take off again when the feds cuts rates at the next meeting in September which I believe to be in the vicinity of .50%
 

 

[preacherman76]

23 minutes ago, Unusual Tournament said:

A couple of things that need to be said about this supposed stock market crash

1 - U.S. high interest rates were instituted to cool the economy and bring down economic growth. So this is really no great surprise and no reason to think the worst 

2 - unlike the dot.com stock market crash, were companies were losing money, these tech companies are the most profitable companies on the exchanges. They are in need of a correction more than the entire market is headed for a crash.

3 - the markets tanked yesterday because Japan’s fed increased rates which were virtually zero to .25% and signalled it would go high. Basically one big market call by the banks that forced investors and institutions to sell. 
 

The fact the all 3 events occurred at once is what corrected the market. There will not be a crash but an opportunity to buy cheap tech stocks over a period of time. 
 

Real savvy investors will by biotech stocks as they have been overly sold for sometime and will continue to correct slightly more BUT will be the first to take off again when the feds cuts rates at the next meeting in September which I believe to be in the vicinity of .50%
 

 

I agree with pretty much all of this. Accept when you suggested this isn’t a crash. It is a crash. The people who play this game with emotion, which are most retail investors, lost big money. 
 

Crypto market crashed with it. I’m watching people on X run around like a chicken with its head cut off. As of this morning many of those losses are already on their way back up. 
 

I think this was just a warm up though. Global debt is out of control. A true correction will come over the next few months, and will be way bigger than this. It changes nothing though. Those who are smart will buy the dips and wait it out. Those who are fearful will take what they have left at big losses. 

[Unusual Tournament]

15 minutes ago, preacherman76 said:

Crypto market crashed with it. I’m watching people on X run around like a chicken with its head cut off. As of this morning many of those losses are already on their way back up. 

Yeah well unlike the Nasdaq and Dow the crypto crash is very much in play. The last 24 hrs was a test for the default currency and it failed miserably. Anyone that was spruiking bitcoin as the new gold is looking very lacklustre today. 

[Unusual Tournament]

18 minutes ago, preacherman76 said:

I think this was just a warm up though. Global debt is out of control. A true correction will come over the next few months, and will be way bigger than this. It changes nothing though. Those who are smart will buy the dips and wait it out. Those who are fearful will take what they have left at big losses. 

I’ll tell you what I find interesting. This concept of buying the dip is what has fueled over priced tech more than anything else. Allowing certain popular tech stocks to take a breather when they take a hit has just prolonged the pain. And to be honest, tech stocks need no more than 20% off their highs to be in correction and since they have lost roughly 10% in the last couple of days that shouldn’t be far off. The magnificent 7 represent 35% of the value of the U.S. exchanges so any expectation should be realistic and limited to big tech as rising interest rates over the last 12 months has softened everything else. 

[L.A.T.1961]

The global economic situation, as illustrated by stock markets, has been defying gravity since Covid. 

The recent correction is not unexpected as the idea behind interest rate increases was to slow economies.

But an interest rate cut in the US will turn stock markets around overnight. 

If interest rate cuts are drip fed into the system there could be another few years of growth in the markets before a real stock crash ?

 

Edited August 6 by L.A.T.1961

[+OverSword]

My office has a ticker on the wall and we're back up 1.61%.

[Gromdor]

Dow Jones is up 476 when I looked at it just now.  So uh, Thanks Kamela?

[preacherman76]

7 hours ago, Unusual Tournament said:

Yeah well unlike the Nasdaq and Dow the crypto crash is very much in play. The last 24 hrs was a test for the default currency and it failed miserably. Anyone that was spruiking bitcoin as the new gold is looking very lacklustre today. 

Thats what I love about crypto. Very volatile. It’s where real life changing gains and losses are made. The more I learn the better I get at it. 
 

Like yesterday morning I knew it was gonna be a great day trading opportunity. I knew most of the space would bounce back. Not all the way but a big push. Boy was I right. Made a days pay doing next to nothing. 
 

That space is still in its infancy. Hasn’t faced clear regulations yet. One day it will be just like the regular stock market. Where your gains over many years will reflect inflation. 
 

I don’t really see the point in Bitcoin either. Same can be said for most coins. If you want to get rich off crypto in the next 2-5 years ya gotta invest in the utility coins. Ones that solve problems. 
 

Right now for the first time in history, the retail investors have a chance to get in before the financial institutions. If you know which coins are going to be useful to them some serious money is gonna be made. 

[MrsGently]

Shows what the stock market has to do with reality: nothing.

Just the gambling hall for the fat cats who play with our future

[MrsGently]

2 minutes ago, preacherman76 said:

Thats what I love about crypto. Very volatile. It’s where real life changing gains and losses are made. The more I learn the better I get at it. 
 

Like yesterday morning I knew it was gonna be a great day trading opportunity. I knew most of the space would bounce back. Not all the way but a big push. Boy was I right. Made a days pay doing next to nothing. 
 

That space is still in its infancy. Hasn’t faced clear regulations yet. One day it will be just like the regular stock market. Where your gains over many years will reflect inflation. 
 

I don’t really see the point in Bitcoin either. Same can be said for most coins. If you want to get rich off crypto in the next 2-5 years ya gotta invest in the utility coins. Ones that solve problems. 
 

Right now for the first time in history, the retail investors have a chance to get in before the financial institutions. If you know which coins are going to be useful to them some serious money is gonna be made. 

I don't think crypto as it is will exist for much longer. As it's really just the parallel currency for organized crime.

It will either get regulated or turns into a red flag marking you as "crime adjacent" when you use it.

[preacherman76]

2 hours ago, Gromdor said:

Dow Jones is up 476 when I looked at it just now.  So uh, Thanks Kamela?

Don’t jump the gun bro lol

They were wrong when they said Trump was going to crash the markets. Trump was wrong yesterday thinking this had anything to do with Kamala. Both side push fear like this all the time. 

1 minute ago, MrsGently said:

I don't think crypto as it is will exist for much longer. As it's really just the parallel currency for organized crime.

It will either get regulated or turns into a red flag marking you as "crime adjacent" when you use it.

You are right. It will not exist as it is for much longer. The whole it’s only used by criminals is BS though. The US dollar far out paces crypto when it comes to criminal activity. 
 

It will absolutely get regulated. It’s already well under way. There will be a handful that survive. The ones that make transactions complete within seconds. The ones that will help tokenize real world assets. Anything of value will end up on a blockchain. The ones that store information, like xdc. The problem solver’s. 
 

Not financial advice, but I’d highly recommend buying XRP XLM XDC HBAR ALGO and a few others. All of which are cheap. All of which will end up in the thousands once the switch is flipped on the new financial system. 

[Unusual Tournament]

45 minutes ago, preacherman76 said:

Thats what I love about crypto. Very volatile. It’s where real life changing gains and losses are made. The more I learn the better I get at it. 
 

Like yesterday morning I knew it was gonna be a great day trading opportunity. I knew most of the space would bounce back. Not all the way but a big push. Boy was I right. Made a days pay doing next to nothing. 
 

That space is still in its infancy. Hasn’t faced clear regulations yet. One day it will be just like the regular stock market. Where your gains over many years will reflect inflation. 
 

I don’t really see the point in Bitcoin either. Same can be said for most coins. If you want to get rich off crypto in the next 2-5 years ya gotta invest in the utility coins. Ones that solve problems. 
 

Right now for the first time in history, the retail investors have a chance to get in before the financial institutions. If you know which coins are going to be useful to them some serious money is gonna be made. 

The most transparent and workable coin imo is Cardano ADA. 

[Unusual Tournament]

27 minutes ago, preacherman76 said:

Not financial advice, but I’d highly recommend buying XRP XLM XDC HBAR ALGO and a few others. All of which are cheap. All of which will end up in the thousands once the switch is flipped on the new financial system. 

You need a coin that has a limited supply and not an infinite amount to make crypto sustainable as a hedge against inflation otherwise printing more coin defeats the purpose of replacing fiat currencies. 

[Unusual Tournament]

48 minutes ago, MrsGently said:

I don't think crypto as it is will exist for much longer. As it's really just the parallel currency for organized crime.

It will either get regulated or turns into a red flag marking you as "crime adjacent" when you use it.

Hey MrsGently, I’ve always had the opinion that crypto is glorified stamp collecting. Trying to push a cylindrical currency into a square banking system is always gonna be a big ask if it can’t accommodate legal fiat currencies. Blockchain technology though is here to stay. Having the most workable cryptocurrency might make a dent if they can find a seamless solution to convert lets dollars into crypto and back again for ledger type projects like billing and logistics. But the western world is geared on political power through currency. Something that will be very difficult to replace by some unbending monetary computation 

[preacherman76]

Just now, Unusual Tournament said:

The most transparent and workable coin imo is Cardano ADA. 

ADA is definitely transparent. I like their libertarian views on currency as well. In my opinion it isn’t among the most workable though. Their implementation of sundae swap was a disaster. It just couldn’t handle the high volumes. I lost a lot of money because my plan to get out moments after officially opening wasn’t possible. I bought a bunch on a pre sale. I knew it would shoot up when it opened then crash from people taking profits. I couldn’t get out till it was way to late. 
 

Also they just don’t have the partnerships with the financial institutions. Coins like XRP are already signed on to several central banks. XRP and XLM have already made deals with the major credit card companies. XDC has made deals to store all information in regards to shipping products all over the world. All of them are tokenizing real world assets. 
 

What makes ADA interesting to me is their plan to hold elections on their blockchain. I think ADA will do well, just isn’t going to be a power house in finance. 

[Unusual Tournament]

1 minute ago, preacherman76 said:

ADA is definitely transparent. I like their libertarian views on currency as well. In my opinion it isn’t among the most workable though. Their implementation of sundae swap was a disaster. It just couldn’t handle the high volumes. I lost a lot of money because my plan to get out moments after officially opening wasn’t possible. I bought a bunch on a pre sale. I knew it would shoot up when it opened then crash from people taking profits. I couldn’t get out till it was way to late. 
 

Also they just don’t have the partnerships with the financial institutions. Coins like XRP are already signed on to several central banks. XRP and XLM have already made deals with the major credit card companies. XDC has made deals to store all information in regards to shipping products all over the world. All of them are tokenizing real world assets. 
 

What makes ADA interesting to me is their plan to hold elections on their blockchain. I think ADA will do well, just isn’t going to be a power house in finance. 

Sorry to hear you lost money. But my point is that crypto to go mainstream needs to be transparent. Concerning ADA they’re just growing pains that will sort themselves out. The watershed moment in crypto will occur in the banking system. And to be regulated it will have to face greater scrutiny than the baste majority of the current bitcoins and etherium which let’s face it are blustered and held together with band aid patches and high gas fees. 
 

When that moment occurred it will be ADA that will adapt better. Time will tell

[preacherman76]

12 minutes ago, Unusual Tournament said:

You need a coin that has a limited supply and not an infinite amount to make crypto sustainable as a hedge against inflation otherwise printing more coin defeats the purpose of replacing fiat currencies. 

Absolutely. All the coins I mentioned have an exact amount that will not be added to. They also burn a tiny fraction of the coin with each transaction. 
 

I know the overall goal is to replace fiat. But that will be a hard sell to the public. XRP as a bridge currency can be used to transfer money say from the US to Germany in 3-5 seconds for a fraction of a penny, and Germany can receive the payment in German fiat, or whatever currency they want. The XRP ledger is already making massive liquidity pools to handle moving trillions per day. 
 

Another cool thing, soon anything of value can be used for liquidity once it’s tokenized. You could earn interest dropping your tokenized property into a liquidity pool. Or your car, or anything of value. 

[preacherman76]

5 minutes ago, Unusual Tournament said:

Sorry to hear you lost money. But my point is that crypto to go mainstream needs to be transparent. Concerning ADA they’re just growing pains that will sort themselves out. The watershed moment in crypto will occur in the banking system. And to be regulated it will have to face greater scrutiny than the baste majority of the current bitcoins and etherium which let’s face it are blustered and held together with band aid patches and high gas fees. 
 

When that moment occurred it will be ADA that will adapt better. Time will tell

Well I’ll give ya this, ADA will do better than most. There is definitely room for them in this space. And early investors will do well. 

[Unusual Tournament]

4 hours ago, preacherman76 said:

Absolutely. All the coins I mentioned have an exact amount that will not be added to. They also burn a tiny fraction of the coin with each transaction. 
 

I know the overall goal is to replace fiat. But that will be a hard sell to the public. XRP as a bridge currency can be used to transfer money say from the US to Germany in 3-5 seconds for a fraction of a penny, and Germany can receive the payment in German fiat, or whatever currency they want. The XRP ledger is already making massive liquidity pools to handle moving trillions per day. 
 

Another cool thing, soon anything of value can be used for liquidity once it’s tokenized. You could earn interest dropping your tokenized property into a liquidity pool. Or your car, or anything of value. 

Not XRP. Ripple is a scam and I would stay well away from it. The others I haven’t researched. Generally I do not think highly of crypto.