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In a move that has left many scratching their heads, stocks took a nosedive on Tuesday, sending shockwaves through the financial world. This sharp selloff echoes a similar panic just a month ago, raising serious questions about the stability of our economy under the current administration.
Major U.S. indexes recorded their worst day since early August, with the S&P 500 plummeting 2.1% and the Nasdaq Composite crashing 3.3%. The Dow Jones Industrial Average, meanwhile, lost a staggering 626 points, or 1.5%.
Now, after seemingly rushing back from the Labor Day holiday, traders were met with disheartening data that reignited fears about the manufacturing sector. Is this just another example of the Biden-Harris administration’s failure to manage the economy effectively? The benchmark 10-year U.S. Treasury yield fell to 3.843%, down from 3.910% on Friday, signaling a lack of confidence among investors.
“We have faded this growth scare perhaps too soon,” said Arun Sai, senior multiasset strategist at Pictet Asset Management. But one has to wonder: are we really just being overly optimistic, or is there something more sinister at play here?
Investors had been riding high on nearly two years of double-digit gains for the S&P 500, but this recent downturn exposes the market’s vulnerability to sudden reversals. While the surging market has created millionaires and boosted many Americans’ net worth, it has also left stocks looking alarmingly overpriced. Companies in the S&P 500 are trading at about 21 times their projected earnings over the next 12 months, well above the 10-year average of roughly 18, according to FactSet.
Even with Tuesday’s decline, the S&P 500 is still up 16% for the year. However, it’s worth noting that the index hasn’t experienced a correction—a pullback of 10% or more from a recent high—since last October. Is this a sign of impending doom?
Data released on Tuesday revealed that U.S. factories are grappling with ongoing weakness in demand. The ISM’s purchasing managers’ index came in lower than expected for August and remains in contraction. S&P Global’s PMI also stayed in contraction, while construction spending data showed a larger-than-anticipated decline. With Friday’s monthly jobs report looming—a key reading that could dictate the Federal Reserve’s next moves—investors are left to wonder if the Fed’s actions are coming too late to avert a recession.
“The story’s not written yet,” said Josh Jamner, investment strategy analyst at ClearBridge. But can we really trust that the Fed will act in time to save us from a downturn?
The Fed is widely expected to initiate its first interest-rate cut later this month. Chair Jerome Powell has made it clear that “the Fed intends to act to stave off a further weakening of the U.S. labor market.” But with the current economic climate, one has to question whether these measures will be enough.
Tech stocks were hit particularly hard on Tuesday, with Nvidia shares plummeting 9.5%. This catastrophic drop resulted in a staggering $279 billion loss in market value—the largest one-day decline in market cap for a U.S. company on record. Despite this, Nvidia is still up 118% for the year. Other chip stocks followed suit, with the PHLX Semiconductor Index down 7.8%.
Boeing also faced a rough day, with shares falling 7.3% after Wells Fargo downgraded the stock, knocking off about 84 points from the Dow industrials index.
In a rare twist, traditional defensive plays—those stocks investors typically flock to during economic uncertainty—managed to shine. Consumer staples and real estate stocks saw gains, but can they really be trusted to hold the market together?
In the commodity markets, fears of dwindling demand from China sent oil prices tumbling. Front-month Brent crude futures dropped 4.9% to $73.75 a barrel, marking its lowest value of the year. Copper prices also fell, dragging down shares of mining and energy companies.
Overseas, Japan’s yen appreciated against the dollar, but will this be enough to offset the turmoil brewing in the U.S. markets? As we navigate these turbulent waters, one thing is clear: the stakes are high, and the future remains uncertain.
Perhaps now is a good time to move wealth or retirement to physical precious metals.
Mysterious “Skyquakes” Are Causing Strange “Booms” in the Sky, and Scientists Have No Explanation
by Michael Snyder
(End of the American Dream)—What is causing the extremely loud “booms” that people are hearing in the sky all over the world? We are being told that “skyquakes” are responsible, but scientists have no idea why these “skyquakes” are occurring. In some cases, the “skyquakes” cause such powerful shaking that…
The Biggest Sale on Long-Term Storage Beef EVER
by Sponsored Post
Let’s cut to the chase. Prepper All-Naturals is offering an unprecedented 40% off for it’s “Beef Steak” survival bags with promo code “steak40”. With a 25-year shelf life and a single ingredient (beef, of course), our most popular product is available for a very limited time with the biggest discount…
Seattle Is Ordered to Stop Blocking Illegal Alien Deportations in the Most Hilarious Court Decision Ever
by PJ Media
A federal court has just pooped in the oatmeal of the West Coast, Messed Coast™governors and local election officials suffering from acute cases of Trump Derangement Syndrome who think they can stop illegal alien deportations. And after this hilarious and thorough legal takedown from the 9th Circuit Court of Appeals,…
Illegal Alien Terror Suspect Found Dead in Cook County Jail Cell
by Slay News
An Islamic illegal alien has been found dead in his jail cell after being arrested on terrorism charges. According to CWBChicago, 22-year-old Sidi Mohamed Abdallahi was found dead at the Cook County jail in Illinois on Saturday. Abdallahi was arrested on felony terrorism and hate crime charges in October. He…
Trump’s Wild Bunch Is Ready for Action
by Frank Miele
If for no other reason than that it will elicit fear in the hearts of autocracy-phobics, I propose that Donald Trump’s second-term Cabinet be known as “The Wild Bunch.” The name is best known as the title of Sam Peckinpah’s classic 1969 western featuring a colorful cast of aging outlaws…
FAA Issues Flight Restrictions Over Questionable Drone Activity Near Trump’s Bedminster Golf Course
by Just The News
The Federal Aviation Administration (FAA) on Tuesday said that it has issued two flight restrictions on the area surrounding President-elect Donald Trump’s Bedminster golf club in New Jersey, following questionable drone activity. The drone sightings were first reported on Nov. 18, but have continued into this week, according to Fox…
Ex-FBI Agent Convicted for Stealing From Jan 6 Defendant During Raid
by Trending Politics
A former Houston-based FBI agent has been convicted of stealing valuables and cash while conducting searches. In one instance, the agent stole cash and silver bars from a non-violent January 6 defendant’s home. Nicholas Anthony Williams, 36, was indicted on January 31 in the Southern District of Texas. Williams, who…
Democrats, Media Elite Urge Biden to Pardon Trump’s Alleged ‘Enemies List’
by Breitbart
President Joe Biden should issue preemptive pardons to his political allies and those deemed to be on President-elect Donald Trump’s alleged “enemies list,” Democrats and their media allies believe. Delivering a preemptive pardon indicates an admission of guilt, although Democrats claim a preemptive pardon would only be intended to block…
Fani Willis Forced to Release All Communications With Jack Smith, J6 Committee
by Trending Politics
The Fulton County Superior Court has ruled against District Attorney Fani Willis, ordering her to disclose communications with Special Counsel Jack Smith and the House January 6 Committee. The decision, announced on Tuesday, follows a lawsuit brought by Judicial Watch, a conservative watchdog group, which accused Willis of violating Georgia’s…
Lindsey Graham Is the Warmongering NeoCon Leading the Charge to Upend Pete Hegseth
by JD Rucker
Pete Hegseth represents a shift away from the wokeness that has infected the United States military. This is possibly the biggest reason President-Elect Donald Trump tapped him to be the next Secretary of Defense and the vast majority of Republicans on Capitol Hill can support this, at least for the…
‘Where Are Black Democrats?’: Charles Payne Tells Personal Story to Call Out ‘Huge Double Standard’ of Biden Family
by Nicole Silverio, DCNF
(DCNF)—Fox Business host Charles Payne called out the alleged “huge double standard” of President Joe Biden’s family Tuesday by revealing that his brother, who struggles with a crack addiction, is currently serving a jail sentence. Payne said his brother, who is getting out of jail on Friday, is likely one…
Zelensky Admits Ukraine Can’t Retake All Its Land: ‘We Must Seek Diplomatic Means’
by Breitbart
Ukrainian President Volodymyr Zelensky conceded in an interview on Tuesday that Ukraine does not have “enough forces” to restore sovereignty over Russian-occupied Crimea and “must seek diplomatic means” to end the Russian invasion and regain its land. The state-run Ukrinform outlet reported that Zelensky described Crimea – which Russia colonized…
Ultra-Processed Foods: How Bad Are They for Your Health?
by Olivia Cook
(Natural News)—Despite the serious health risks associated with eating junk food, they remain the most consumed food products in many countries, particularly developed ones. But a review published in The BMJ, which studied 9.8 million people, warns that eating a lot of ultra-processed foods can increase your risk for 32 diseases. Among these are heart…
“Already Pretty Far Down the Line”: The Container Store Could File for Bankruptcy as Soon as Next Year
by Tyler Durden, Zero Hedge
(Zero Hedge)—As the retail apocalypse that started with Amazon and e-commerce continues, the latest victim is The Container Store. The retail giant could file for bankruptcy as soon as next year, according to the New York Post, who said the retailer is blaming its recent descent on “a weak housing…
Mysterious ‘Car-Sized Drones’ Over New Jersey Prompt FBI Investigation
by Zero Hedge
Several weeks of mysterious drone swarms over the skies of one New Jersey county near the military research and manufacturing facility Picatinny Arsenal have sparked concerns among residents and prompted an FBI investigation. “It’s kind of unsettling,” Mike Walsh, a Morris County resident who has spotted the drones on numerous…
UNESCO’s New Mission: Train Influencers About Combatting Online “Misinformation”
by Reclaim the Net
The UN Educational, Scientific and Cultural Organization (UNESCO) is now incorporating teaching influencers how to “fact check” into its activities. UNESCO claims that influencers have become “primary sources of news and cultural information” around the world – which prompted it to carry out a survey into how these online personalities…
