Tipsheet

It's Likely Going to Be a Rough Day on Wall Street

Matt Vespa
Matt Vespa  |  August 05, 2024 1:35 AM

Wall Street is likely to be a bloodbath today. The first warning signs were on Friday, culminating on Sunday night when all hell broke loose in Asia. The Nikkei had its worst day since 1987, sinking nearly 4,000 points. It suspended trading after sinking nearly eight percent. South Korea’s stock exchange halted all sell orders as a looming wave of brutality is expected to hit Wall Street this morning. We’ll update this post accordingly, but a drubbing on the New York Stock Exchange shouldn’t surprise anyone. Also, don’t look at your 401ks (via CNBC): 

U.S. stock futures fell Sunday night following a volatile week for Wall Street, in which the Nasdaq Composite dropped into correction territory. 

Wall Street is coming off a brutal week for the major averages. On Friday, the Nasdaq capped a third straight week of losses, bringing the tech-heavy index down more than 10% from a record set last month.

The S&P 500 also posted a third straight losing week, down 2% for the week. Even the Dow Jones Industrial Average, which had been outperforming, snapped a four-week win streak, falling 2%. 

Treasury yields tumbled as well. The benchmark 10-year note on Friday yielded 3.79%, down from where it was one week previously at 4.20%. 

The recent pullback in stocks was exacerbated Friday when a disappointing jobs report spurred investor fears the Federal Reserve made a mistake last week when it kept interest rates unchanged, and that the economy is headed toward a recession. 

More on the Japanese stock market plunge (via AP): 

Japan’s benchmark Nikkei 225 stock index plunged as much as 8.1% early Monday, extending sell-offs that shook world markets last week as worries flared over the state of the U.S. economy. 

At one point, the Nikkei shed more than 2,900 points, to 32,991.88. The market’s broader TOPIX index also fell 8% as selling picked up in the afternoon. 

A report showing hiring by U.S. employers slowed last month by much more than expected has convulsed financial markets, vanquishing the euphoria that had taken the Nikkei to all-times highs of over 42,000 in recent weeks. 

The Nikkei 225 dropped 5.8% on Friday and it is headed for its worst two-day decline ever. Its worst single-day rout was a plunge of 3,836 points, or 14.9%, on a day dubbed “Black Monday” in October 1987. Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The Nikkei is now at about the level it was a year ago. 

It will be fun watching Kamala Harris trying to explain all of this if she’s asked. She’s been hiding from the media since she was given the nomination despite no Democratic voter ever voting for her in a primary.

How Trump responded to the economic news:

UPDATE: Yikes.

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UPDATE: Taiwain has suffered the worst stock market losses since 1967.