Stocks Dive, Rate Cut Odds Soar, Trump Blames Impeachment

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Global equities are under pressure amid and rate cut odds rising amid weakening economic data. Trump blames impeachment.

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%.

Half-Assed Assurances

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.

Blame Impeachment

New Rule

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

Comments (29)
No. 1-14
Latkes
Latkes

I doubt that Trump has much of an effect on the stocks in the long term, one way or the other.

shamrock
shamrock

"New Rule It's never about Trump, unless it's good."

That's new? I have a feeling that's been going on for about 70 years now.

lol
lol

Unless this economy (massively)markedly improves (and fast) Trump's chance to reup for a 2nd tour drops to zero (less than zero).He's won't run and take a chance on gettin embarrassed by Hillery or Pocohontas,he'll go the LBJ route.....claim a bone spur flare up why he's not running for reelection,then ride off into the sunset knowing he at least tried to turn this disaster around!

Tony Bennett
Tony Bennett

DJT has 65 million followers on twitter.

Tweet hurricanes ahead as he gets in front of media to lay blame.

Laid groundwork on who the fall guys will be ... Xi for not making a deal ... Powell for too little too late ... Democrats who want to impeach.

It will be interesting to follow his poll numbers as recession builds.

Stuki
Stuki

You know you are dealing with a genuine economic illiterate; when something gratuitously mispriced becoming (slightly) less so; makes him run around looking for someone to, of all things, "blame...."

numike
numike

If it was not for the media, impeachment, back stabbers than the economy would be on solid ground and humming along nicely? hmmm

njbr
njbr

Look at it this way, the economy would be already in recession without a trillion dollar deficit (5% GDP growth is a trillion dollars--and we're diving down to 2%).

Feel better now?

Try to tell me it has to do with the "I" word flung in last couple of weeks.

thimk
thimk

a bad day at the tracks and the sky is falling , cry me a river . the stock market has plenty of cushion for downward trajectory. we haven't entered the stratosphere yet.

Augustthegreat
Augustthegreat

A two baby always has somebody else to blame. Does anybody seriously expect Trump to act differently?

Realist
Realist

It is indeed very sad to see that America elected this childish cry-baby as President. He is clearly the worst President the US has ever had. There may be a President even worse than Trump someday, though it is truly difficult to imagine someone worse. My condolences to Americans.

CzarChasm-Reigns
CzarChasm-Reigns

You'll get tired of all the winning Trump appears to be losing it now...

He missed an excellent opportunity to shrug his shoulders & do a much better mobster impersonation when he asked "Are you talking to me?"

Country Bob
Country Bob

Biden has early stage alzheimers, his son is a crook, and Biden himself tried to blackmail Ukraine by withholding US taxpayer funds unless his crooked son got a pass.

Bernie had a "heart attack" this morning, and thinks that socialism is viable.

The idea that the batsh!t lady from Massachusetts is now, by default?, the dem front runner ... has Wall Street absolutely terrified. And the IPO crowd in California will all be homeless if Warren decimates their IPO businesses.

Even faceplant CEO Zuckerberg understands that Pocahontas is an existential threat to the IPO lifestyle that is northern California to Seattle.

That is what made the stock market tank. No one actually believes Trump will get impeached, but he might waste so much energy tweeting about the crazy lady that he drops the ball on something important.

Snow_Dog
Snow_Dog

Monday : Charles Schwab Tuesday : TD Ameritrade Wednesday : E*Trade

All the discount brokers are going to commission free trading! That’s right, you can trade for free.

Big time deflation is right around the corner. Just wait until free trading for Joe Sixpack can’t even produce any liquidity.

Sechel
Sechel

Trump sounds like he's predicting seven years of drought and famine on impeachment. He's tweeting and screaming like a mad-man, and so far the white house doesn't have a strategy, it's just Trump being crazy and tweeting. Time to appoint a lead lawyer and set up a war room. The sooner he shuts up and lets a lawyer run things the better off we'll al be.