For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails
Sign up to our free breaking news emails
Sign up to our free breaking news emails
A sell-off across US markets has continued as investor sentiment soured amid growing fears that the world’s largest economy is facing a recession.
The mood spilled over into London’s FTSE 100 on Monday which dropped 79.66 points, or 0.92%, to close at 8,600.22.
It follows a week of turbulence for global stock markets, in which investors have tried to digest the impact of US tariffs on Canada, Mexico and China.
Over the week, American President Donald Trump made policy, then reversed it, including temporarily halting tariffs on Canada and Mexico on Thursday.
On Wall Street, the S&P 500 had plunged 2.3% by the time European markets closed, and Dow Jones was down 1.2%.
Experts said there could be a number of reasons for the sell-off.
David Morrison, a senior market analyst for Trade Nation, said there was uncertainty surrounding tariffs, adding: “The president appears to be taking a scatt
21 Comments
cj
Hopefully this isn't a biased take:
I think this is a unique situation because the recent moves (in my opinion) are largely a result of everyone's uncertainty around America's policies.
In other words, the recent stock moves aren't because we're seeing a bunch of companies fail to miss quarterly targets. There are no major economic indicators flashing red.
If stocks can drop that fast in a couple weeks, they can also (hopefully) rise just as fast, especially if the catalyst was some poorly timed or thought out US policy decisions. (Although there's a non-zero chance that the president continues down this road and just ignores the stock market in the short-term, which I find terrifying, along with everyone else on wall street I presume)
mberning
To be fair I think this is long overdue. The fundamentals do not support the price of many stocks. Recently Tesla had more market cap than Toyota and many other established brands combined. No way in hell that is believable.
slaw
Stock market bubble started slowly deflating. When is housing market bubble going to deflate?
throw0101b
"Sadly" I don't really have much cash on the sidelines to buy more equities as prices dip as I generally don't try to time to market / buy the dip:
* https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-co…
I'm not generally 100% equities, often 80/20, so things will be rebalancing on their own at least at least:
* https://canadiancouchpotato.com/model-portfolios/
* https://www.finiki.org/wiki/Asset_allocation_ETF
* https://www.moneysense.ca/save/investing/etfs/one-etf-portfo…
I have a few more decades until retirement, so buying low now would be nice.
timewizard
Buried in the center of the article:
> “Many people have been worried about elevated valuations among US equities for some time and looking for the catalyst for a market correction.
The writing has been on the wall for 6 months now, depend on what sectors you care about, the technocrats from both sides have juiced this dilapidated system to it's breaking point.
knowaveragejoe
That's weird. I was assured that the adults are in charge now.
nabaraz
S&P 500 is barely down (~9% as of this post) after returning 23% and 24% respectively in 2023 and 2024. I wouldn't call it ugly, as someone who lived through recession.
FartinMowler
It's the Biden sell-off. /s
stego-tech
Liquidated my speculative longs two weeks ago in anticipation of such a downward swing. Valuations have been divorced from reality for years, and I'm hoping this is a long overdue reckoning for the whole market. Seeing some stocks disproportionately impacted also suggests the market is preparing for a chaotic few years ahead, as the US administration flatly admits they don't care what businesses think about policy choices like tariffs or gutting of the Federal Government, nevermind the brewing constitutional crises.
Put simply, I do not see meaningful and consistent value in the US Economy for the next four to six years. I'm doing research on taking my longs into index funds or positions in other markets that have a diversified economy (and not mostly services/imports, like the USA) and will be steaming away from their dependence on the American market in the following years. If I invest into anything domestic, it'll likely be companies reshoring parts of the supply chain and retracting outsourcing.
thegrim33
Posting the same story 4 times in the last 24 hours and having 3 of those 4 posts flagged to death wasn't enough for you, you had to post this for the 5th time today? This account just posts political rage bait every day and never comments, someone please just ban it.
hnpolicestate
Is it possible that wall streets economic interests were not aligned with the interests of U.S citizens? One could argue we are now so down the road of globalization that any attempt to pull back would cause economic disaster. I think probably yes.
The wealthy make their money in the market, while the poor rely on wages whose dollar keeps decreasing in value. I get the 401k angle too. But for too long the wealthy have prospered through dividends while the plebs can't afford rent, let alone a house.
chistev
I just want my XRP to rise again
ChrisArchitect
[dupe] https://news.ycombinator.com/item?id=43322776
thry1231296
[flagged]
TrackerFF
US tech companies are almost all down YTD.
European defense companies are killing it.
9283409232
I've been operating on the theory since the election, before Trump took office, that Musk and his cabal of billionaires are trying to force a recession so they can buy it all up for pennies on the dollar. Elon Musk directly said "prepare for hardship." Everything that has happened since then has just given me more confidence in my prediction.
sampton
Back paddling on the tariffs without any concessions is more damaging the tariffs themselves. It shows the leadership is uninformed and the economy is very weak. Way to flash your weak hand in the first round.
Akarnani
if we are not going to export dollars, and we are going to make countries spend more of thier own money, then thier cost of borrowing will go up, they will need to rotate out of dollar assets and then traders who use the carry trade will need to unwind them as the source of borrowing (other countries very low interest rates) are no longer very low, as we now see in UK, Germany, and Japan—each hitting very fast highs for interest rates for their govt debt.
It's much more straightforward math then reading of political or vibes tea leaves.
varelse
[dead]
nextworddev
You know people are long and losing money when AI twitter is quiet
yard2010
What a great time to enter the market!!