In midday trading, the Dow Jones industrial average slumping 3.3 percent. The S&P 500 index sinking 165 points, or 3.8 percent. The tech-heavy Nasdaq was losing biggly, giving back 651 points, or 5 percent.
I am not looking at investments today. The drop was wiping out the gains from the previous session’s massive rally. All reactions to the FED jumping the rates up 1/2 of 1%.
What remains to be seen???
Nancy Davis, founder of asset management firm Quadratic Capital Management: “The market is way too optimistic about the Fed’s ability to tame inflation. The Fed is hiking aggressively into a weakening economy. They can raise rates as much as they want — rate hikes don’t put more truckers on the roads.”
A few posts down in “Getting It Planted,” farmer-economist Michael Smith is optimistic about the current planting season and getting 2022 crops in this year. And yes, even with low soil temps, too much precipitation or too little rain in various parts of the US. Not farmers first growing season and they can catchup and recoup.
In today’s Musical Chairs in the Jobs Market . . . NDd predicts more job hopping and openings with wages continuing to rise in the short term. Lower spending may lead to weaker monthly job gains.
This is still a supply chain issue which the Fed raising its rate is not going to solve. As spending decreases so will demands for supply and inflation. Nancy Davis is correct also.
“Dow plunges more than 1,000 points as fears about economy intensify (msn.com)“
“We Will Get It Planted – Angry Bear (angrybearblog.com)“
“The game of musical chairs in the jobs market intensifies to all-time highs – Angry Bear (angrybearblog.com)“