What’s Behind The Stock Market Drama?

Use PATRICK activation code at http://nordpass.com/patrick to get a NordPass Business 3-month free trial. No credit card is required.

This makes the stock market look more like crypto – which in theory it isn't — is it?

The US economy is only doing good for those who are already wealthy, have good nepotism jobs, or are sheltered bc their wealthy parents, the rest 90% of us are struggling heavily

stock market is the biggest scam ever orchestrated by humans

What's Behind The Stock Market Drama?

00:00 – 📉 The global stock markets faced significant declines on Monday, with major drops in the US, Europe, and Japan, and extreme volatility in bond yields and foreign exchange rates.

00:19 – 📊 The VIX index, which measures stock market volatility, spiked to its highest level since early 2020 but has since moderated.

00:52 – 🇯🇵 Japan's Topix index fell sharply, erasing its annual gains and marking the worst crash since 1987, before rebounding.

01:29 – 📉 US markets also dropped significantly, with major tech stocks losing about $1 trillion in two days.

02:00 – 📉 The sharp market declines were triggered by a disappointing US jobs report and weaker economic indicators, including slowdowns in manufacturing and earnings.

03:07 – 📈 Apple and other tech companies are hoping AI will revive growth, but there are concerns that it may not meet high investor expectations.

03:27 – ⚠ There is increased concern about a possible US recession, with Goldman Sachs raising the probability to 25% from 15%.

04:03 – 🏡 Evidence of a consumer slowdown is seen in decreased demand reported by companies like Disney and Hilton.

04:33 – 🏦 US consumers have depleted their pandemic savings, impacting spending and market valuations.

05:14 – 📉 The Japanese market's decline was exacerbated by a surprise interest rate hike and market adjustments to the new rate environment.

06:25 – 🔒 NordPass offers a solution to secure and manage passwords, highlighting the importance of strong security practices in the digital age.

07:20 – 📈 The unexpected rate hike in Japan led to significant market volatility, with rapid shifts in the yen affecting global markets.

08:19 – 📉 Japan's efforts to stimulate inflation are challenged by a weak yen and its impact on consumer spending and the economy.

09:20 – 💹 Japanese firms like Toyota experienced a decline due to the yen's strengthening, which reversed some benefits from a weak yen.

10:01 – 🔄 The yen carry trade's unwinding contributed to global market volatility, with investors rapidly adjusting their positions.

11:36 – 📉 Market correlations increased dramatically, with stocks moving in unison due to broader market shifts.

12:22 – 🇯🇵 Japan's market has experienced many ups and downs, reflecting structural issues like high public debt and an ageing population.

13:20 – 📉 Despite a recent market rebound, Japan faces challenges with high debt and weak economic recovery.

16:01 – ⚠ The US stock market has seen volatility due to fears of higher interest rates affecting economic growth and consumer spending.

17:12 – 📉 Big tech stocks, which had driven market returns, are struggling to meet high expectations, with concerns about AI investments and insider selling.

18:27 – ⚖ Legal issues, such as the antitrust judgment against Google, could impact tech companies like Apple, particularly regarding their revenue streams.

19:31 – 🤖 AI investments by tech firms face scrutiny, with questions about their profitability and consumer reception.

20:27 – 📉 Trading platforms of major brokerages like Charles Schwab, Vanguard, and Fidelity experienced outages during the market sell-off, preventing some retail investors from trading.

20:56 – 📈 The US treasury yield curve briefly returned to normal after being inverted for two years, which often signals a potential recession.

21:27 – 📊 The Sahm rule, created by economist Claudia Sahm, acts as an early recession warning by indicating a recession if the three-month average of the US unemployment rate rises significantly.

22:12 – 🌪 Some economists suggest that recent unemployment spikes may be due to temporary effects from Hurricane Beryl, affecting businesses and unemployment claims.

22:29 – 🧩 Matthew Klein argues that the labor market is not as bad as it seems, pointing out distinctions between temporary job losses and longer-term unemployment.

23:07 – 🔍 The recent increase in unemployment is largely from categories less indicative of severe economic conditions, such as people entering the labor force or finishing temporary jobs.

23:42 – 🔍 Claudia Sahm notes that the Sahm rule might be overstating demand weakness and recommends considering rate cuts, as current readings may not reflect true recessionary levels.

24:20 – 📉 Higher rates are impacting the economy by reducing demand, but risk-taking remains, with meme stocks and crypto still active.

25:12 – 📈 US GDP growth was 2.8% in the second quarter of 2024, and global equity markets have recovered much of Monday's losses, though volatility remains high.

25:31 – 🏢 The upcoming Nvidia earnings report will be a key indicator of the US tech sector's health.

25:43 – 💡 During sell-offs, panicking can be detrimental; brokerage outages on Monday might have helped some investors avoid selling at lows.

Ai is useless

We need to go back to the golden era where stocks had near zero impact on the rest of the economy. Though ideally, we move completely away from this broken system

"inverted yield curve has predicted 20 out of last 7 recessions" ?? 21:00

Dude it’s hard to take you seriously when you say Tesla “is just having a bad year due to demand for their products drying up.”

It’s massively disingenuous to imply that it’s a one year thing. He alienated 80% of his customer base and over 65% of the population. I personally would never consider buying a Tesla ever even if it was free to me.

The US Labor report lies…with monotonous regularity. They'll "adjust" it next month then again after the elections.

20 of the last 7 recessions :)=

The reasons behind the recent drop in the U.S. stock market are quite straightforward: First, last week’s data showed a significant drop in initial jobless claims, which has eased concerns about an economic recession. Second, the impact of Japan's interest rate hikes and the government's measures to stabilize the yen can be disregarded. Third, Warren Buffett’s sale of half his Apple shares, whether due to tax reasons or overvaluation, has simply brought the stock back to its previous level. These three factors are likely to be fully adjusted soon, and the market will likely return to its normal state.