Dow dives 600 points, as markets worry about US economy

[IronLionZion]

https://www.cnn.com/2019/10/02/investing/dow-stock-market-today/index.html

New York (CNN Business)The Dow and the broader stock market are flashing deep red on Wednesday.

Worries about the health of the US economy have gripped investors after a worse-than-expected report on America's manufacturing sector threw markets Tuesday. The Dow and the S&P 500 recorded their worst day in more than five weeks in response, and Wednesday isn't shaping up to be any better.

The Dow (INDU) fell as much as 600 points, or 2%. The S&P 500 (SPX) was also down 1.9%, while the Nasdaq Composite (COMP) fell 1.7%. "I think yesterday's US manufacturing PMI report was a game changer," said Fawad Razaqzada, technical analyst at Forex.com, in emailed comments.

Tuesday's report by the Institute of Supply Management showed America's manufacturing sector contracted for a second month in a row in September. The index, which measures month-to-month changes in the industry, dropped to its lowest level since June 2009.
"Up until now, the US manufacturing and other sectors of the economy had remained resilient despite weakness in other economic regions like the Eurozone and China... but now investors are worried that the largest economy has also caught the cold," Razaqzada said.

In more disappointing data, private payrolls for September undercut expectations earlier Wednesday. The report also sharply revised the August numbers down, which is adding some nervous tensions ahead of Friday's US jobs report.

So far, American consumers have kept the economy roaring, in part because the country is near full employment. Should this change, GDP growth could get hit.

Nothing to worry about folks. Everything is just peachy. Or Hillary did it to punish the rust belt workers again. Maybe it's Pelosi this time with impeachment. But the important thing to know is this has nothing to do with tax cuts or trade wars.

[TheFarseer]

1. They showed a graph on the news

That the market went up during Clinton’s impeachment - much like the market had been doing. The market went down during Nixon’s impeachment- much like it had been doing. My point is the market doesn’t care that much about politics but about economic fundamentals. Always has. Always will.

[A HERETIC I AM]

4. I think it cares to the extent that the president has influence over policy.....

which can have a dramatic effect (imagine closing the ports to new cars, for instance), but your points are well taken.

[IronLionZion]

7. Trump's economy has terrible fundamentals

there has been a lot shared here about it. His tax cuts are directly impacting the bond market and interest since Treasury has to issue more bonds to cover the deficits.

The trade wars directly impact manufacturing and agriculture, which are big parts of the US economy.

When consumers cut back on spending, then we are really going to see the impacts on everything.

[TheFarseer]

10. It's hard to argue we are not in a bubble

But many companies are still seeing good earnings if not record profits. Of course that can change and change abruptly.

[IronLionZion]

11. As long as people keep buying their goods and services

customer demand for American products has been reduced overseas. There are warning signs that domestic demand may slow down.

[Johnny2X2X]

2. The good times have passed.

https://www.cnbc.com/2019/10/02/the-bull-market-is-losing-one-of-its-most-powerful-backers.html?recirc=taboolainternal

The good times, the times when Americans should have been paying down their debt and saving are ending. I'm afraid for what's next as we do not have subject matter experts driving the economy right now.

[IronLionZion]

8. The wealthy have done that. The tax cuts helped the wrong people as always.

Lower income people are the ones who would boost the economy if they got more money. The wealthy have been saving for the rainy day that is coming.

[duforsure]

3. Trump's slump

Because of his failures will continue with his trade war, his policies favoring the wealthy and hurting the middle class and the poor, his environ mental failures, and immigration, all hurting our economy , but watch what he claims next. He'll claim it's because of the Democrats when he drove the deficit up, ignored drug prices, gave the wealthy trillions . We've seen this before when W Bush did the same thing but not as extreme as trump and the GOP have done. Democrats will once again have to clean up after Republicans after they pilfer more of our money into their pockets driving us into a recession or worse yet a depression. It's almost like he's doing this for Putin for revenge for him.

[ffr]

5. Pullng the rug from underneath him. He's finished!

[Thomas Hurt]

6. Oh yeah, King Sharpie will say this is all because of the impeachment.

[Nitram]

9. Don't worry, Trump has done more harm than good for the markets and the economy's stability.

[ooky]

12. The market was due for a profit taking dive

by its algorithmic traders. They are gathering in their harvest and preparing for the next dip buy. Leave your money in and it will come back up again, and dive again when they take their next round of profits. They don't give a shit what Trump does except keeping their capital gain taxes low.

Its flatlined since Feb 2018.

[argyl]

13. And guess whose fault this is.

https://www.cnbc.com/amp/2019/10/02/trump-says-impeachment-nonsense-is-driving-the-stock-market-lower.html