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re: Dow Jones down 666. Well that can't be good ! Nasdaq down 300+. Meta down 14 %.

Posted on 4/25/24 at 10:06 am to
Posted by LSURussian
Member since Feb 2005
126966 posts
Posted on 4/25/24 at 10:06 am to
quote:

I do believe the main reason for today’s drop is due to the GDP numbers.
Being a glass half full guy, I look at the GDP drop as the Fed's higher interest rates are starting to get some traction.

We'll have a lag before we see inflation go down but a slowdown in the economy always tampers inflation eventually.
Posted by notiger1997
Metairie
Member since May 2009
58271 posts
Posted on 4/25/24 at 10:31 am to
quote:

Being a glass half full guy, I look at the GDP drop as the Fed's higher interest rates are starting to get some traction.


This. Isn't this what we have all been wanting?
Even sometimes in the past 6 months, bad news ended up looking like good news to the market as that meant there it was more likely the feds may start lowering the rates.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11196 posts
Posted on 4/25/24 at 10:43 am to


Graph includes:
10 year yield
WTI
SOFR

Corporate spreads are falling despite P&L bloodbaths in small caps and deteriorating growth in large caps. I'm not sure there's any real impact outside of the financial sector alla REPO and savers. Long duration rates are tracking tightly with WTI which makes more sense since that's going to impact growth and inflation expectations. I guess there's a strong argument that it has sucked up captial from the private sector which is deflationary.
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