Summary
Wall Street entered a “correction” as the S&P 500 fell over 10% from its recent record, driven by Trump’s escalating trade war.
On Thursday, the Dow dropped 537 points (1.3%), the Nasdaq fell 2%, and the S&P 500 lost 1.4%.
Trump’s threat of 200% tariffs on European wine in retaliation for EU whiskey tariffs fueled market uncertainty.
While inflation and job market reports showed resilience, fears of economic stagnation persist. Investors remain concerned about the long-term effects of tariffs and volatile trade policies.
I am doing my part.
In the past two weeks I have sold off 95% of my stocks.
I even transferred an old jobs 401K into a rollover IRA so I could sell off all those stocks as well.
What are you planning to hold instead?
My stocks are definitely taking a beating, it is not fun.
“Correction”
I wonder how long they’ll keep calling it a correction. Full recession? Depression?
Maybe I’m mistaken but I thought “correction” is a term used for the market while “recession” and “depression” are terms used to describe sustained negative GDP growth?
Yes. However, my sarcastic statement is that they would continue to call it a correction even after economic collapse.
Inversion?
The job report at the end of this month is going to cause another correction.
