Dow plummets as investors grow fearful about the economy

[SoonerPride]

https://www.cnn.com/2020/06/11/investing/global-stocks-coronavirus-fed/index.html

The rising number of coronavirus cases in the United States has unnerved Wall Street. A second wave of infections could force many businesses to close again just after they reopened.

Federal Reserve Chairman Jerome Powell said Wednesday that the economic future was highly uncertain. Although he acknowledged that May's jobs report was a welcome surprise, he noted that many millions of Americans will never go back to their jobs and could remain unemployed for years.

Coronavirus could permanently change many parts of the economy, and Fed economists predict unemployment will remain elevated for several years. Although Powell and the Fed also expect to keep their lead foot on the stimulus pedal for quite some time -- usually a major boost to corporate bottom lines and stocks -- the dour forecast rattled investors.

OK, I have some THOUGHTS.

They didn't seem bothered last week that 40,000,000 people are unemployed.
Or that 100,000 people died from COVID in a mere 3 months.
Or that demand is zero.
Or that the global economy is in recession.

Did they just NOW wake up and read the headlines?

The market is so fucking messed up it makes my head spin.

[beachbumbob]

1. Fed Reserve already signaled they will continue to bail out the Investor class, so the market

is totally artificial now and perhaps that realization is striking home? You can't have a negative GDP AND A BOOMING market so something has to give sooner or later and when it does, it all comes crashing down.

[soothsayer]

2. Nah-uh, Kayleigh said they believe in drumpf

Just yesterday. And she promised not to lie.

He’ll need to send them a stern letter demanding a retraction.

[bullwinkle428]

3. Awaiting the "creative" Tweet blaming Barack Obama.

[soothsayer]

10. Not yet, but this

Link to tweet

?s=21

The Federal Reserve is wrong so often. I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021. We will also soon have a Vaccine & Therapeutics/Cure. That’s my opinion. WATCH!

[uponit7771]

4. J Powell said we're screwed into 2022 and the skewed UE numbers don't change negative GDP

[leftyladyfrommo]

5. Down 1,014 right now. nt

[RKP5637]

6. Time for tRump to call it all fake, that really the market is soaring to new heights.

It's Obama and Hillary making the media spin lies.

[jalan48]

7. Wall St wants more tax payer money or else. Remember "Too big to fail"?

[Iliyah]

8. Stock market didn't care about Floyd's death nor the peaceful protest . . .

They didn't care about the looting and violence that ensued neither. They didn't care about peaceful protesters being gassed, rubber bullets being shot, beaten, and riders on horses, black hawks, and a general wearing combat fatigues so that shithole could walk across the street and stand in front of a house of worship who members/priest were forcefully removed, and to boot, shithole holes the bible upside down, for a photo op.

This trickle down bullshit doesn't work neither.

[durablend]

9. "Clearly George Floyd's fault!"

"He and the Democrats are trying to do everything to make me look bad and steal the election!"

Watch!

[duforsure]

11. They should be scared

Trumps desperately trying to keep the markets propped up using our money, but their unlimited printing up money is driving us into a debt that'll make it much worse, plus trump will use it to cut all social programs , while he funnels millions to himself and billions to his wealthy supporters. You can't support a good economy doing that. The economy was already turning sour from trump policies before the government shutdown . this is just the tip of the ice berg for this economy failing. 60 million are out of a job, and 25-30 million jobs may be gone for good. Trump and the GOP are the cause of these disasters , they were not capable of doing their jobs, for the American people , and sold us out to trump and Putin to win there elections.

[shockey80]

12. The Fools of Wall Street.

They chase money like a dog chases its tail.

[bluedigger]

13. I sense another $1200 for me and another $500B for thee, Wall St.

Guess I'll take it, like I always do.

[SoonerPride]

15. Moscow McTurtle won't allow any more stimulus money

No matter how much pain there is for the "little people."

He has already said we aren't getting any more help.

[shockey80]

17. Never believe what Moscow Mitch, Turtle Face, says.

[Johnny2X2X]

14. They've been in denial

Maybe it's being driven up to take profits, I don't know, but socks are way over valued right now. It's almost like they don't know where to park their money so they're parking it in equities which is propping everything up.

We have 20% UE, we'll see GDP growth of perhaps 30% annually the next report, it's all bad news. And a good portion of these jobs are not coming back.

Right now, it's way way worse than it ever got in 2008, the markets seem to be slow to catch onto that for some reason.

[SoonerPride]

16. Exactly. I think the free Fed money hs propped it up and given them a false sense of safety.

They have been divorced from market fores for awhile now.

Maybe that has ended.

[marmar]

18. The big run-up in the stock market that preceded this was delusional anyway.

[MoonlitKnight]

19. Another interesting factor in recent stock market performance

People who used to bet on sports have flocked to the stock market because they don’t have sports to bet on.

https://www.axios.com/sports-betting-stock-market-surge-0e945773-d676-4f0a-a6a0-a0f92611b10b.html

https://www.barrons.com/articles/day-trading-has-replaced-sports-betting-as-americas-pastime-it-cant-support-the-stock-market-forever-51590174899

“ Traders jumped on the most beaten-down, lowest-priced shares, with the expectation that they could score the biggest percentage pops. These bettors piled into airlines, which are getting federal assistance—ironically the opposite of the tack taken by Warren Buffett’s Berkshire Hathaway (BRK.A), which dumped its airline holdings. The top Robinhood trader positions are Ford Motor (F) and General Electric (GE), which are near their lows, with single-digit prices. Also stepped up: bets on Covid-19 treatments from Sorrento Therapeutics (SRNE) and Moderna (MRNA).

Even more, these speculators also have piled into options. Citing data from Sentimentrader, Bianco describes small options trades of fewer than 10 contracts as being overwhelmingly bullish, with buying of calls or selling of puts.”

Some hedge funds have had to cover short positions, driving prices even higher.

[SoonerPride]

20. Now that is indeed fascinating.

And also more proof that it is more a casino than market....thanks for sharing!