US stocks were sharply lower Friday as investors digested souring consumer sentiment and inflation data that showed an uptick in one of the Federal Reserve’s key gauges, underscoring the delicate state of the economy as businesses brace for President Donald Trump’s tariffs.
The Dow tumbled 750 points, or 1.77%, on Friday. The broader S&P 500 fell 2.1% and the Nasdaq Composite slid 2.8%.
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Wall Street was also grappling with Trump’s announcement on Wednesday of 25% tariffs on all cars shipped into the US, set to go into effect April 3. Trump also announced tariffs on car parts like engines and transmissions, set to take effect “no later than May 3,” according to the proclamation he signed.
Its a bit higher than the low it hit two weeks backish on the 13th. Its significant because the bit of recovery petered out and in the past little false recoveries like this was the stair step down that made it into a truly crashing market. It did not so far though fall below the low of the recent drop but it is pretty close to it.
“Technical” analysis is bullshit. There are enough value based indicators that show why the US stock market is going to have a rough time in the coming years without this hocus pocus speak.
E.g. the combined P/E of all stocks on the NYSE is over 25 while that of Nasdaq is over 29. That indicates a massive bubble as this ratio historically averages around 20.
This was already under Biden, Trump is just triggering the correction with his ineptitude instead of some outside factor. The fact he, unlike Biden, is not even trying to resolve the underlying causes will just make it worse.
I agree. honestly even that P/E is greatly skewed by this millenium. The correction was meant to happen about the time of covid but ironically covid caused a very short spike drop and I think the emergency itself combined with the efforts taken sort tar papered it out of it and it kinda went crazy opposite.