18.03.25 Stock Market Worries

March 26, 2018
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WHAT’S NEXT?

Stocks Suffer Worst Week in 2 Years

“We need things to calm down in Washington a little bit to get things going.”



Art Cashin, UBS Dir. of Floor Operations to CNBC March 23, 2018

what happened?

STEEP LOSSES

  • 3 major stock indices (The Dow 30, S&P 500 & the Nasdaq Composite) dropped about 6% on average last week – worst weekly performance since 2016.
  • The Dow ended at a 2018A low.
  • And it’s not just the US…A Globally, stocks shed $2.4 trillion in market value last week.

WHY NOW?

Why? Pick Your Poison:

  • Trade War:A $60B in tariffs on China which threatens to retaliate.
  • Russia Probe:A Trump vs. Mueller uncertainty.
  • Int Rates: Raised .25% (higher rates = more expensive to borrow $$ = *could* slow economy).
  • Facebook: Calls for privacy regulation may upend tech world.

CLICK: Trade Refresher

Will the Hits
Keep on Coming?

Most analysts still consider this a “normal correction” – not a “bear market” with continued selling.

However, the losses are unsettling after a really strong 2017, the 1st year in history where the S&P 500 showed gains EVERY month.

So Now What?

WHAT TO WATCH:

Stocks may be at the mercy of politics for now – but here are 2 things to watch that could help stabilize the markets:

  • Economic Data: Investors will be watching housing & personal income/spending data this week, markets closed Fri. for holiday
  • Earnings season: Begins late April

WALL ST. TO D.C.

Some Perspective

  • Despite the stock market’s recent struggles, the Dow remains up about 30% since Trump’s election.
  • The Dow closed at 19,827 on Inauguration Day, Jan. 20, 2017, which means the Dow is still up 3,700 points in the ‘Trump rally.’

Setting the tone for the trading week? The Trump Admin. says its not bluffing, vowing to push ahead on China tariffs despite market turbulence. Read what the Treasury Secretary said on Sunday – click here.

We are going to proceed with our tariffs. We”re working on that, Mnuchin told Fox News Sunday in an exclusive interview, while acknowledging the U.S. is also trying to reach a trade deal with China in which the country would reduce tariffs and further open its markets.



As the president has said, we want to cut the trade deficit $100 billion over the next year. a| I”m cautiously hopeful we reach an agreement, but if not we are proceeding with these tariffs. We are not putting them on hold.



There”s a lot of different things impacting the stock market, but I think the most important thing to focus on is the market will go up and down in the short-term, the real important issue is where will it be longer-term. And the market is still up an enormous amount since the since the election, Mnuchin said.

by Jenna Lee,

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