Market closes down exactly 20% from the highs
US stock markets crumbled into the close and the S&P 500 finished down 65 points, or 2.7%, to 2351. That's almost exactly 20% lower from the all-time high, which was set September 24.
The index is also at the lowest since April 2017 as sentiment crumbles on the combination of a tariff war and rate hikes.
I'm going to throw something else out here as well: The market may increasingly believe that Trump is going down. I'm not sure anyone has an idea of how he's going down but all the resignations in his White House are bad news. Mueller is looming as well.
With this drop, money is going to abandon Trump and that was one of the final things holding together his loose alliance with mainstream Republicans..
If you assume that Trump is done, it doesn't take too much imagination to imagine an ugly downfall.
As for the decline, markets are mercifully closed on Christmas and that leaves little time left for a recovery before the end of the month/year. If the Dow closes at these levels, it will be the worst month for US stocks since October 2008 and the 16th worst month ever.
Here's the damage today:
- S&P 500 -65 points to 2351
- Nasdaq -2.2% to 6192
- DJIA -653 points, or 2.9%, to 21792
This tweet came on August 30, the exact day the Nasdaq peaked.
