Dow Dumps 500 Points As Powell Fails To Save The Day

The Dow is down over 500 points as the hope that Fed Chair Jerome Powell would rescue the world with a few brief dovish words... is crushed.

Fed Chairman Jerome Powell, in his prepared remarks, points out the FOMC at the last meeting upgraded its forecasts and expects a “strengthening in the medium term outlook.” It’s really interesting that he points out that strong global growth has boosted U.S. exports without at all mentioning the elephant in the room: the possibility of a disruptive trade war with China and perhaps other countries. As Bloomberg notes, the fact that he is not focused on this publicly is very consistent with the idea that the Fed will raise rates in June and several times this year.

Half the Wednesday surge has evaporated...

 

All major indices are in the red for the week...

Comments

two hoots Liquid_Silver Fri, 04/06/2018 - 14:14 Permalink

Remember this from 2015:

New Money Market Regulations

Floating Net Asset Value

Institutional money market funds must now maintain a floating net asset value (NAV). This means funds will no longer be able to set a constant $1 per share price. Instead, share prices will fluctuate with the market.

Fees and Gates

This rule allows boards of directors for money market funds to impose fees or even suspend redemption of shares temporarily in times of financial stress. The trigger for a fee or temporary suspension (gate) for institutional and retail money market funds is when the weekly level of liquid assets falls below 30% of total assets. At that time the fund’s board may impose up to a 2% redemption fee. It can also suspend redemptions for up to 10 business days in a 90-day period.

In reply to by Liquid_Silver

NoDebt Fri, 04/06/2018 - 14:01 Permalink

When the President is starting a trade war with China, and saying openly "the market may take a hit" at the same time the Fed is determined to hike rates (merely so they can lower them again in the next crash)... it's time to go. 

Endgame Napoleon Taffy Lewis Fri, 04/06/2018 - 15:18 Permalink

I, too, am a Trumptard, and I am glad that a POTUS finally had the cojones to stand up to China. 

I am not rooting against your stocks, but just for more job growth here in the USA, not in cheap-labor China.

If this distracts from the coming Fed interest rate hikes, so be it.

The biggest goal of Deplorables remains an end to the welfare-guzzling deluge of illegal immigration, but hey, this is good. 

Trump v / s ‘The Giant Sucking Sound of Jobs Crossing the Pacific Ocean’ 

In reply to by Taffy Lewis

gdpetti boostedhorse Fri, 04/06/2018 - 14:20 Permalink

He did his bit earlier... now, the game is to lay low and let the spice do its trick... and then spin it into some fantasy the herd has been long conditioned to accept as beneficial... like Trumpy's 'hit'... everything has been short term in DC since our exceptionality has expired... but DC puppets don't understand... they just react when their strings get pulled.

Powell, like Jamie Dimon et al... have been sending out these memos for months now... so no surprise, right? The goal of the 'dark shepherds' in control of the herd is to keep control of the herd by manipulation of their natural instincts... most animals group up into herds etc... schools.... which show their level of awareness... and the key is get them to censor themselves... get them to utilize their lost Free Will to just stay in the pen until its their turn to be pushed off the cliff.

In reply to by boostedhorse

VK Fri, 04/06/2018 - 14:05 Permalink

Sentiment has totally turned on the ponzi of the last twenty five years. The more the Dow crashes the better off Main Street will be as the focus will go back to manufacturing. 

Francis Marx Fri, 04/06/2018 - 14:08 Permalink

      What is stupid is he said over and over they are raising rates. So how is the market suddenly surprised?

     One has to really laugh at this. Its like Keystone cops lol.

mailll Fri, 04/06/2018 - 14:40 Permalink

If only Trump let Janet Yellen stay put. Things started to go haywire the day Janet began saying her goodbyes.  I suppose she also waved goodbye to the rising stock market.

Md4 Fri, 04/06/2018 - 14:53 Permalink

"The Dow is down over 500 points as the hope that Fed Chair Jerome Powell would rescue the world with a few brief dovish words... is crushed."

No...

Just a little taste (hopefully) of the forthcoming reality bites days.

Wall Street sharkin' begins to end, while tremendously damaging and warping Fed policy slowly climbs up to more ordinary levels.

These bastards are terrified they might actually have to earn their money for a change...

abgary1 Fri, 04/06/2018 - 16:17 Permalink

Talk all you want Powell, just stay out of the equity markets, normalize rates and end the Fed.

We need to get back to market price discovery valuations for everything.