Based Underground is now a conservative news aggregator AND curated newsletter.
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%.
- Preserve your retirement with physical precious metals. Receive your free gold guide from Genesis Precious Metals to learn how.
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.
Here’s the Sign That Kamala Is Worried After the Debate, and What Trump Has to Say About It
by Red State
As I predicted, the media is going to declare Kamala Harris the winner no matter how it went, and yes, they’re already off to the races. That was a foregone conclusion. Former President Donald Trump wasn’t just dealing with one opponent; he had to deal with the hostile moderators as…
Another 9/11 Anniversary, and We Have Still Learned Nothing
by Frontpage Mag
In the wake of the September 11, 2001 attacks which turned the World Trade Center into a hellscape, the U.S. invaded Afghanistan, where the Taliban government had protected the 9/11 mastermind, Saudi cleric Osama Bin Laden. Two years later, we invaded Iraq at least partly on the premise that Saddam…
Kamala Shamelessly Lied Her Head Off Throughout the Debate
by Red State
I guess it was a foregone conclusion that the ABC debate was going to be a mess, but people were yelling about the moderators not being fair from the jump. It’s pretty clear why Vice President Kamala Harris only wanted to do a debate with ABC, given the bias they…
Debate Moderator Fact-Checks Trump on Botched Abortions, Ignores Eight Babies Who Died in Minnesota
by Just The News
One of the ABC News debate moderators on Tuesday fact-checked former President Donald Trump on babies who survive botched abortions, saying that they aren’t killed. But Minnesota records show eight babies in recent years have in fact survived botched procedures but then died after being denied life-saving care. Trump said…
Fact Check: Kamala Harris Claims She Was Raised in the Middle Class
by Breitbart
CLAIM: Vice President Kamala Harris claimed during Tuesday night’s presidential debate that she had a middle-class upbringing. VERDICT: Mostly false. Harris had a rich Canadian upbringing, growing up in Westmount — a majority English neighborhood in the French province of Quebec. When asked if Americans are better off today than…
Kamala’s Open Doors for Violent Inadmissible Illegals
by Frontpage Mag
Despite the discovery of widespread fraud, the Biden-Harris administration decided to resume its mass migrant parole sponsorship program under which hundreds of thousands of migrants from Cuba, Haiti, Nicaragua, and Venezuela have already been allowed into the United States. As the Center for Immigration Studies explained, “To hide the massive…
New theory drops: CNN is now rooting for President Trump because their ratings suck so bad…
by Revolver News
As the 2024 election creeps closer, the theories are piling up. Everyone’s got an agenda, and the rumors about what’s “really” happening are flying fast and furious. However, one thing that’s got people scratching their heads is CNN’s behavior. They’ve been pretty tough on Kamala Harris for a while now….
Report: High-Ranking U.S. Secret Service Official Asked to Retire in Wake of Attempt on Donald Trump’s Life
by Breitbart
A high-ranking official within the U.S. Secret Service has reportedly been asked to retire and will soon end his tenure with the agency. Fox News on Tuesday identified the individual as Office of Protective Operations Assistant Director Michael Plati. He has over 26 years of federal law enforcement and homeland…
Police Audio, Report Confirm Haitian Goose-Hunting in Ohio: ‘They All Had Geese in Their Hands’
by The Federalist
A recording of a police phone call obtained by The Federalist reveals a local resident reporting a group of Haitian migrants carrying four geese in Springfield, Ohio two weeks ago. “I’m sitting here, I’m riding on the trail, I’m going to my orientation for my job today, and I see…
Israeli Official Suggests Offering Hamas Leader Safe Passage Out of Gaza in Exchange for Hostages
by Just The News
An Israeli official this week teased an offer to allow safe passage for Hamas leader Yahya Sinwar out of Gaza, if the terrorist organization releases all of its remaining hostages. Israel’s Coordinator for Hostages and the Missing Gal Hirsch said Sinwar, who is considered the architect of the October 7…
Texas Cops Capture Venezuelan Killers Linked to Murders
by Dallas Express
Four members of a violent Venezuelan gang who were encountered at the Texas-Mexico border and released by the Biden-Harris administration have been arrested in Colorado. U.S. Immigration and Customs Enforcement officials confirmed to Fox News correspondent Bill Melugin that four known and suspected members of the Venezuelan gang, Tren de…
State Treasurers Warn Costco, Walmart, Kroger, Albertsons to Not Sell Dangerous Abortion Pill
by Life News
Treasurers and state financial officers representing 14 states sent letters Monday to Costco, Walmart, Kroger, Albertsons, and McKesson calling on C-suite leaders to resist political pressure to begin selling the chemical abortion drug mifepristone at their pharmacies. The letters were signed by state financial officers of Texas, Alaska, Idaho, Kansas,…
Biden and Harris Issued 300 Executive Orders to Erase America’s Border
by The National Pulse
The Biden-Harris government has issued nearly 300 executive orders to implement its mass immigration and open-border policies, according to Senator John Kennedy (R-LA). Additionally, the Louisiana Republican stressed this all occurred during Joe Biden and Kamala Harris’s first year in office. “Reminder: The Biden-Harris White House wrote nearly 300 executive…
Realizing Mass Migration’s Cost, Europe Is FINALLY Saying “No!”
by The New American
Less than a decade ago, Sweden was accepting more migrants relative to its population than any other nation on Earth. Its state TV ran ads proclaiming “My country is also yours” and that Swedes must integrate into the new multicultural reality. Now, this year, more migrants will leave Sweden than…
Congressman Eric Burlison Turned Away From DC Jail Where January 6th Political Prisoners Are Being Held! What Are They Hiding?
by The Gateway Pundit
Representative Eric Burlison of Missouri tried to visit the DC Gulag, where January 6th Political prisoners have been held for years. He was turned away at the door by jail employees. See his viral X post here that already has 1.4 million views…
‘Vote Trump’: RFK Jr Tells Voters in All States ‘A Trump Victory Is a Kennedy Victory’
by The Post Millennial
In a video posted by Robert F. Kennedy on X Tuesday, the former independent presidential candidate encouraged all of his supporters to vote for Republican presidential candidate former President Donald Trump because “a Trump victory is a Kennedy victory” Kennedy posted on X: “Bottom line: No matter what state you…
“Spoiled Brats”: Greenpeace Co-Founder Supports Texas Billionaire’s Campaign to Bankrupt His Old Group
by NIck Pope, Daily Caller News Foundation
(DCNF)—One of the original founders of Greenpeace told the Daily Caller News Foundation that he hopes to see Greenpeace USA lose a lawsuit that threatens the group’s existence. Patrick Moore, who was listed on Greenpeace’s website as one of the original founders as recently as 2007 before the organization attempted…
