After a round of steel and aluminum tariffs that were a clear shot at China with almost every other major exporter nation being protected by immunity rocked the markets, President Trump doesn't seem done pounding them with export fees. Recently announced technology tariffs are another direct shot at our number one threat to our seat as the number one economy the world.
Last week President Trump announced his plans for steel and aluminum tariffs in an attempt to keep true to his promise and save the steel workers jobs. The truth is that while it may save steel jobs, almost every other job sector will take a hit. Domestic consumers will feel it across the board as well.
It was another up and down week for the stock markets with the Dow swinging between 25,400 and 24,800 over the week before closing the week up almost 100 points at 25,304. Wild weeks like this will be common over over 2018.
The stock market saw it rise for the 5th straight day in a row, and many are beginning to claim we are in the clear. The dow is back up over 25000 closing the day at 25,200, up 306 points (1.23%). The Nasdaq also closed up over 112 points (1.58%) and the S&P added 32 points (1.21).
The stock market temporarily appears to be stabilizing. With back to back days in the green an optimist could believe we are in the clear, but one should not assume this most recent run is indicative of any future improvement. More likely on cast with the turbulent 2018 previously discussed.
After back to back down weeks for the first time in over a year, the markets closed up with the down closing up 410.32 (1.7%). The NASDAQ followed suit closing up 107.46 (1.56%) as well as the S&P 500 which rose 36.45 (1.39%).
While the Dow did bounce back on Friday and closed up 330.44 points (1.38%) at 24,190.90, the week still marked the worst week in 2 years. This came on the back of the previous week which had seen the first drop in over a year.Friday ended with the S&P 500 up 1.49 percent to finish at 2,619.55, while the Nasdaq added 1.44 percent to close at 6,874.49.
By definition a correction is a 10 percent drop in stocks from their peak. Since Jan. 26, the S.&P. 500 has fallen 10.16 percent. Closing down 292 points today marks the first correction since the February 2016 and the tenth in the last twenty years.
After a terrible week was followed up with a historic single day fall, the stock market rebounded Tuesday closing over 500 points up on the day. While the day started off on rocky footing by mid day it was clear that today was going to be another day where all major indexes end in the green.
At the end of 2017 many inside the crypto bubble couldn't see an end to their metric rise. Talks of fifty or sixty thousand dollars a coin for 2018 were thrown around as legitimate possibilities in their eyes. However the reality of what crypto currency has seen over the first five or so weeks of the new year is what everyone on the outside was frightful of, the bubble popping.
Following the worst week for the New York Stock Exchange since 2016 which saw the Dow slide 500 points, the slide continued into the new week with the worst single day slide since 2011 dropping the Dow 1100 points. But are we looking at a correction, or a crash?
While it is true we seem to be hitting new highs in the stock market almost every week with what appears to be business optimism thanks to a businessman holding the seat of president, it is also true we are living on borrowed time. But is 2018 the year the market corrects itself, or can the optimism carry us through another historic year all the way into 2019?