Ugly Start to 4th Quarter
The Wall Street Journal reports U.S. Stocks Drop on Worries About Growth
The Dow Jones Industrial Average dropped about 500 points Wednesday as worries about a slowdown in the U.S. economy rattled markets to start the fourth quarter.
The stock market’s declines were broad and accelerated through the morning. All 11 sectors in the S&P 500 fell, as did all but one of the 30 blue-chip stocks in the Dow. Among the biggest losers were shares of big industrial and technology companies.
FTSE 3% Decline
The Financial Times reports FTSE 100 has worst day since 2016 as global stocks extend ugly start to Q4
Rate Cut Odds Soar
A week ago, CME Fedwatch had the odds of a cut just over 50-50. Today, they are over 75%.
I suspect New York Fed president John Williams did not do the markets any favors today with his half-assed assurances Fed has Recession Tools, Promises to Use them Quicker Next Time.
Long-term, such statements are meaningless even if they did affect something today.
It's never about Trump, unless it's good.
Thus, when you see headlines like this Manufacturing ISM Worst Since 2009 on Severe Contraction of Export Orders it is a certainly that Trump played no part of it.
Instead, the blame must be elsewhere. In this case, the global decline is clearly about impeachment.
Mike "Mish" Shedlock