Tech Stocks DROP as Market Worries No More Stimulus! CBO Warns Debt “Unsustainable”

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Tech stocks have been the biggest and best of the financial system right now. More flowing in, debt building higher, more ownership and control. Suddenly, there has been another turnaround. Not the first one this sector has experienced, that’s for sure. With just about every retail investor, institutional investor, and central bank-turned hedge fund buying tech stocks, the question is: Will they ever go meaningfully down?

 

Stock market today: Dow drops more than 500 points, S&P 500 posts first 4-day losing streak since February

Dow drops more than 500 points, S&P 500 posts first 4-day losing streak since February

Stocks fell on Monday as fears about the potential worsening of the coronavirus pandemic, as well as uncertainty on further U.S. fiscal stimulus, rattled traders. The Dow Jones Industrial Average dropped 509.72 points, or 1.8%, to close at 27,147.70. The S&P 500 lost 1.2% to 3,281.06.

Stock sell-off accelerates and is expected to get worse before it gets better

Stock sell-off accelerates and is expected to get worse before it gets better

Stock investors focused on new worries about the coronavirus and economy, selling into a market Monday that was already technically shaken and set for further declines. But Monday’s sharp sell-off was different than the September slump that has centered on tech and growth stocks.

Monday’s stock-market selloff sets up worst September in 18 years – MarketWatch

Monday’s stock-market selloff sets up worst September in 18 years

September trading is living up to its billing and then some. Stocks on Monday were seemingly unraveling a bullish trend that now risks thrusting U.S. equity benchmarks into a bearish tilt that could set the stage for the worst September selloff in years for the major equity gauges.

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Deutsche Bank, JPMorgan lead drop in bank shares amid suspicious funds report

Deutsche Bank, JPMorgan lead drop in financial shares amid report the banks moved suspicious funds

Financial stocks came under pressure on Monday amid a report that a number of global banks moved allegedly illicit funds over the past two decades despite warnings from U.S. officials. Shares of Deutsche Bank dropped nearly 8%, while JPMorgan fell almost 5% in premarket trading.

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A financial crisis could surprise investors ‘sooner rather than later,’ warns Deutsche Bank – MarketWatch

A financial crisis could surprise investors ‘sooner rather than later,’ warns Deutsche Bank

Excuses/reasons to sell? The stock market’s giant vat of worries is spilling over on Monday. Global banks are tanking over allegations of a money-laundering scandal, second-wave COVID-19 worries, and a possible delay to badly needed fiscal stimulus in the U.S., due to political tussling after the death of Supreme Court Justice Ruth Bader Ginsburg.

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After the Stimulus Binge, Brace for a Crash – Reason.com

After the Stimulus Binge, Brace for a Crash

Government Spending As anybody who has ever snorted a few lines of white powder to enhance an evening knows, there is a price to be paid for that artificial energy. The short-term boost is followed by a crash of longer duration. Well, America, get ready for a hell of a hangover.

Congressional Budget Office: Federal debt nears ‘unsustainable’ levels – Washington Times

Congressional Budget Office: Federal debt nears ‘unsustainable’ levels

Federal debt is nearing “unsustainable” levels, but low interest rates have created a window of opportunity for policymakers to rein it in, the Congressional Budget Office said Monday, delivering a mixed forecast for the government’s long-term outlook.

Government debt rose at a 59% pace in Q2 amid effort to halt coronavirus

Government debt rose at a 59% pace in Q2 amid effort to halt virus

Government and business debt soared in the second quarter as the U.S. dealt with the coronavirus pandemic, even as personal net worth rose and consumer credit plunged at a record level. A Federal Reserve report released Monday showed the total household balance sheet in the U.S.

A Covid Surcharge on Restaurant Checks? Some Owners Are Wary – The New York Times

A Covid Surcharge on Restaurant Checks? Some Owners Are Wary

New York City will soon let restaurants add a temporary charge of up to 10 percent as help in the pandemic, but reaction in the business is divided. Like most restaurants in Manhattan’s tourist-dependent Little Italy, Da Nico Ristorante has been hit hard by concern over the coronavirus.

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The Money GPS is the most active, most informative channel in the financial world. Day after day, breaking down the data and making it easy to understand. This channel is not here to help build a portfolio, give stock picks, or financial advice. It’s simply data that is generally not found through conventional means.
Tech stocks have performed very well in 2020. The financial companies have been benefitting from low interest rates. There has been much interest in further increasing debt and more leverage as the potential grows greater for further profit.

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