2d ago

U.S. stocks see biggest 2-day wipeout in history as market loses $11 trillion since Inauguration Day

www.marketwatch.com

marketwatch.com

Roughly $11.1 trillion has been wiped away from the U.S. stock market since Jan. 17, the Friday before President Donald Trump took the oath of office and began his second term, according to data from Dow Jones Market Data.

Some $6.6 trillion of that figure was lost on Thursday and Friday alone — the largest two-day wipeout of shareholder value on record, Dow Jones data showed.

United States | News & Politics @midwest.social

cm0002 @lemmy.world

2d ago

U.S. stocks see biggest 2-day wipeout in history as market loses $11 trillion since Inauguration Day

www.marketwatch.com /story/u-s-stocks-poised-for-biggest-two-day-wipeout-in-history-as-marketloses-9-6-trillion-since-inauguration-day-430919f6

United States | News & Politics @lemmy.ml

return2ozma @lemmy.world

2d ago

U.S. stocks see biggest 2-day wipeout in history as market loses $11 trillion since Inauguration Day

www.marketwatch.com /story/u-s-stocks-poised-for-biggest-two-day-wipeout-in-history-as-marketloses-9-6-trillion-since-inauguration-day-430919f6

174 comments

Its liberation day!
- The US stock market has been liberated of 11 trillion dollars and counting.
  What a party, what a party.
- You mean libation day, right?
  ಠ_ಠ
  You mean libation day, right?
  
  Lobotomy Day!
- "Drill, baby, drill"
  Stock market: "To the ~~moooooon~~ cooooooooore!"

Wow, $11 trillion is a lot. Really puts the $36 trillion sitting liquid in offshore tax havens into perspective (yet seems to be missing from every conversation about money.)
- The problem is that it is legal (in a gray legal sort of way), and the people in power only lose if they fix it. So we can only talk about it.
  
  Perhaps it's high time to go beyond talking about it.

The top 10% wealthiest Americans own over 90% of stocks...
https://markets.businessinsider.com/news/stocks/stock-market-ownership-wealthiest-americans-one-percent-record-high-economy-2024-1?op=1
I do feel bad for the people who left their 401k in the market instead of government securities. trump has been saying he'd do this dumb shit since the campaign.
- But bitcoin is going to...oh.
  Oh well, at least gold is.... Oh.
  GME to the moon!
- Not exactly sure how one is supposed to transfer one’s 401k to government securities on such a short timescale…
  
  Trump was elected in November. I had every cent moved out of US stocks by mid December. My tax burden is already less than what I would have lost if I kept them money where it was.
  There was plenty of time if you were paying attention. If you didn’t move your money, unfortunately, that’s on you.
  Edit: SPY puts with 20%. The 40% bonds. 30% forex. 10% cash. But what the fuck do I know. I didn’t make any money and you all know exactly what you’re talking about and I’m full of shit.
- I don't understand then, are they just bilking each other?
  If the billionaires are buying en masse to profit off this, someone is selling. If billionaires own the majority...they're...selling to each other and losing?
  
  A potential explanation is this is the Russian fall of communism / transition to oligarchy moment, where regular people will get rid of the "worthless" stocks fearing no bottom, and the top 1% will buy them for pennies on the dollar.
- I wonder if we'll get another high return iBond this year

Trump is golfing while a man he admits is innocent is in an El Salvador prison

At least there’s no genocide in Palestine, right?
Right?
- Seethe, troll.
  
  What
- I mean, to be fair, most of the genocide already happened before election day under Biden, but yes, there will definitely be more as long as the AIPAC bribes keep flowing-- and no one is talking about shutting those down. I believe the last person (JFK) to try to deal with this by relisting AIPAC as a foreign agency was assassinated shortly afterward. RFK also tried and he was also killed.
  Which is nothing but a coincidence I'm sure, the zionists would never do something like that. And christians in the US are close friends and allies of Israelis, right.
  https://www.jpost.com/breaking-news/article-761490
  
  already happened
  Watching the 'genocide Joe' crowd cope with the fact they supported the turbo genocide candidate will never not be funny to me (In the grim irony kind of way).
  
  I mean no disrespect, because we are writing sentences that we never intended to write, but Jesus Christ, "most of the genocide already happened (...) under Biden". It's utterly depressing. I'm really disappointed that American citizens worked very hard for this to happen, but it feels also like a consequence of something bigger, as if there was a bipartisan dictatorship or something even deeper, in which parties are just knights or bishops.
  
  So… “to be fair” what you’re claiming, is that there’s little genocide left for Trump to commit, and then- a bunch of conspiracy theories.
  It’s a damn good thing you people argue so diligently on the side of reality. It really helps drive that batshit insane ideology of yours home.

Curious how does that stack up historically with the largest drops in history percentage-wise?
I checked out the investopedia article:
The Dow had its sixth-worst week of the 21st century; it fell 7.9% over the week and 9.3% in the last two days.
The Dow shed 2,231 points on Friday, its third-largest one-day point decline on record.
The Nasdaq Composite has dropped 11.4% since Trump’s tariff announcement, also its worst 2-day stretch since March 2020.
- Of some note is that the market was only allowed to tumble for two of those five days following the announcement of the tariffs. That almost assuredly makes a difference here.
  
  Can't wait for next week lmao
- Absolute numbers like bullet 2 aren't super useful. The DJIA wasn't even at 2000 until sometime in the 80s.

Go woke go broke? Seems like when you go conservative you get absolutely ripped.
- go fasch lose cash
- I know your right in saying people vote like Trump was the conservative, but Harris was really the conservative. Trump was the populist autocratic. thinking the GOP is the conservative party is crazy to me. They haven't been in a long ass time. You want status quo and security for your money and livelyhood? Don't vote for the populist who has ''ideas'' about how the country should REALLY be ran.
  That's how you get Pol Pot shutting down food imports because he wanted higher domestic food production, you know BEFORE they could make enough food to feed everyone without the imports. All the other autocrat or populist that instantly rammed a country into the ground also had a cult that made them entirely delusional.
  
  That's how you get Pol Pot shutting down food imports because he wanted higher domestic food production, you know BEFORE they could make enough food to feed everyone without the imports.
  This really is exactly what trump is doing. He’s slinging tariffs around like that will spur US industries (and as a petty attempt at being a strongman) and farming but giving those industries zero lead time, and on top of that, the tariffs he imposed are going to affect all of the materials and machinery those industries would need to ramp up their production. And on true insulated tyrant fashion he just makes a declaration and then it’s everyone else’s problem to deal with.
  Dude’s a fucking idiot.
  
  Amen you right. America is so far right wing, thats why any small help for the common worker or man they all scream socialism or communism.
- It was projection once again. It turns out being anti-woke is indeed the path to poverty
- Come on now a couple billionaires are going to make tons of money
  
  Which billionaire is making money? Look at the stock market and look how much these big companies lost.

Now I know why Trump, during his rally, said people would ask him to stop winning.

I’m 41 years old, I’ll be 42 in a few weeks, I’m getting really tired of living through these “once in a lifetime events” every 24-48hrs.
- Total sidebar: You should re-read The Hitchhiker's Guide to the Galaxy when you turn 42!
  That's what I did. Now I'll never forget the last time I read the series.
- As a 45yo, I agree.
  
  Yeppp. Also makes me really distrust mainstream economists, because somehow these crashes always come as a surprise.
  Like what we're doing is not working. We need to try something else

Putin will be pleased.
- ...and his other buddy, Xi.

We're entering Once in a Lifetime Recession #5. Buckle up folks. The feds up shits creek and has been since COVID, so no cash bailouts are coming anytime soon. This should be a fun one!

Is this the red wave?
- Certainly there's bleeding

Lets hope this leads to Republicans loosing for 60 years like last time :3

Are we winning yet?
- Nope, but someone believes there's a plan 🤔
  https://unherd.com/2025/02/why-trumps-tariffs-are-a-masterplan/
  
  That’s a lot of words to say Americans should expect a rapid decline in their standards of living so we can drive down the price of our own labor due to people being desperate.
  
  🤡🤡🤡
  This dude is convinced Trump has a grand plan and is a master negotiator.
  
  That seemed like rambling wheels within wheels nonsense.
- Is America great again yet?

Let's see if he can make that number $111 Trillion lost by the end of May 2025.

Liberating the fuck out of our wealth. <teamAmericaTheme.wav>
- We use .flac around here /s
- Into the hands of billionaires, who will be the only ones left able to buy up whatever they deem still has value.

How does this compare to 2008?
- 28 September 2007 S&P 500 was $1526 per share
  27 February 2009 it was $735
  31 January 2025 it was $6040
  Today it is $5074
  
  Ok, so 2008 was a 52% loss in almost a year and a half.
  Right now it's only a 16% loss in a little over 2 months.
  Someone far smarter than I am could maybe figure out the monthly decline percentage and compare 2008 losses vs now. Don't get me wrong, it's a shitload of money, but it doesn't look like the stock market is anywhere close to reaching 2008 levels of loss.....yet.

Gasp! However, zero sympathy for the MAGA voters losing their asses in the stock market.
- Unfortunately I sincerely doubt a lot of them have retirement savings of any significance. There’s a reason Red States are a bigger draw on federal money than Blue States. But if there’s any consolation, once the food prices start hitting again they’ll take notice.
  
  My MAGA friends on Facebook are yelling about "buying opportunities".
  Where is that buying money coming from? I got none myself.

so the chainsaw worked!

Oh no, billionaires losing unrealized gains, what a shame
Let's flip the fuck out about it
- Or regular people all losing money they had invested
  
  There's more people who don't have investments than there are that do. That includes 401k. Welcome to the poor people's club.
  
  I have parents who are near retirement who voted for trump. Only my dad works and has to support my mom. This upcoming weekend, I'm gonna ask him how his portfolio is looking. If his vote is paying off.
  
  Dude how many of the 49% of USA citizens who can't even handle a 1k USD emergency spend have stocks or options
  How many of the 120 million people who have feared for years that they won't get to enjoy their social security have stocks or options
  Because that's the regular people
  Are you even reading yourself

You can't really use past market events as a reference for anything happening now. The global system is completely different and changing very fast. The longer term implications here are that the U.S. Govt has been out of money for a while and there is a ton of upcoming debt to issue. Part of the response to this is to fund the Govt using tariffs, and begin shrinking the deficit by using the economic problems and the total debt to justify it. They are trying to avoid a debt crisis where there is more debt being issued than buyers. The problem is that this time, with other options existing for capital than Treasuries, which given the circumstances, the old idea that people run to Govt debt when the markets crash for safety just might not hold up this time. The end result is that they haven't solved anything, and in fact made the upcoming debt crisis much worse. What's more is that the old reserve currency dollar system being replaced will accelerate now as trade is forced to route around the U.S. There are so many second order effects here too, all of this will kick off a justification to privatize everything and have the private sector jump in to save and replace Govt functions. What they have wanted to do all along anyway, and given the current political climate will mirror the oligarchs taking over Govt functions after the collapse of the USSR. This is just more of a controlled demolition.
Sorry for the wall of text. Also, a bretton woods style agreement will be necessary, it's just that there is no single world power strong enough to enforce one. The futures for Monday look pretty bad too, and there are so many unresolved problems since 2008 that could blow up one after another once all the liquidity is removed and there is no one willing to purchase all the upcoming debt.
- The debt issue is greatly over exaggerated. The US as a whole owns over 300 trillion in assets and trillions more in untouched resources. The US isn't broke and it isn't poor. It only feels poor because
  our capitalist system is nearly the worst possible system for distributing resources where they actually need to go and
  Capitalists use their resources to corrupt and bend our government to their will which results in car centric urban sprawl that is 5x less resource efficient.
  For example, if we built public transit and walkable cities we could make transit completely free and it would cost far less than subsidizing car dependency. But we can't do that nation wide because it would devalue the car industry, the asphalt industry, rubber industry, and the oil industry. Under capitalism, the profits of the 0.1% always take priority over what benefits the 99%

So much winning!

We’re sick of this winning!

It's going great!
- Oh, is it tee time already?

so weird to be cheering for our own demise, but is it really our own demise? i don't own stocks. do you? and where does 11 trillion actually go? to another country's market? fiat currency is so weird. it's almost as if it's all just smoke and mirrors that don't actually reflect reality. did anything physically change since dumptwat announced tariffs? capitalism just seems like a giant lie divorced from reality. let's burn it all down.
- Do you have a 401k?
  
  lol no
  
  No actually. My job doesn't offer one. Many people either are in the same position where their job doesn't offer retirement benefits or they're not paying into it because they need every last cent they can spare.
  
  Yeah, but I moved 90% of it to stable bonds in Inauguration Day.
- The value went away, not actual money. Say you own a pair of Jordan’s original shoes worn playing for the bulls, and he shows up drunk on a tv show and spends an hour crapping all over the bulls. You still own the shoes, but they will be worth less if you try to sell them.
  
  but they're still shoes, and if you bought them for anything more than being shoes, doesn't that seem divorced from reality?
- In terms of where the money foes its quite easily. The majority will just evaporate. A lot of people and company's may shift their invested money to European (or somewhere else) companys whichay rise a bit in value, but the majority of the money is just gone. The value of a company is a mix of how profitable they are and a lot of how much people think a company will be profitable in the future and therefore are investing into it (its like the typical production and demand thing. If more people want to buy something it rises in value).
  
  where the money foes its quite easily. The majority will just evaporate.
  the thing that didn't exist in the first place evaporated. that doesn't sound weird to you?
  also "how much people think a company will be profitable"... you just described a confidence game and gambling.

I expect Musk to become the first trillionaire from all of this. Thing is, that trillion will be worth $100 Euros or any other form of currency that isn't attached to America.
May the money pit that Musk stands on, suck him in like a bog.

Can someone explain the tangible effects of this?
- Companies are going to lay off loads of people and close any department that costs too much just to increase the stock price again. For investors stock price is everything and they don't care much about consequences.
  USA stock market crashing means the dollar is getting less worth compared to other currencies, so anything imported gets more expensive in the USA, what is most items. Things getting more expensive means less people buying stuff, less economic activity so more layoffs.
  All those layoffs means people can't pay back there debt. Trump doesn't care about people in debt and somehow makes it worse. Banks get in trouble. Trump cares about banks and big businesses so they get bailed out. Taxes on everybody else increases to pay for bailouts.
  To distract from all this, Trump starts challenging China and it leads to war. Marshall law is called and Trump starts funneling more money to the military making things even worse.
  
  Marshall law is called
  And he's already stated that running for a 3rd term isn't off the table.
- You're all going to be poorer.
  
  You say that as if it won't likely affect you as well. Even if you're not American, the next decade will be worse financialy than the last. There are probably some exceptions, but not many.
  
  This doesn't explain anything. To do that you would have to say why.
- Wait for the orange to be almost out the door and buy stock
  
  This doesn't explain anything

Just wait until the markets open on Monday...

Stock market always fluctuates at big changes. Bigger the changes -- bigger the fluctuation. There isn't much sense of checking that fluctuation every few hours. Wait a few months at least. And that situation would be interesting.
- The thing is that in the past our government wasn't intentionally doing irreparable harm to our economy by giving nearly every trading partner we have the middle finger.
  Maybe the markets will recover, but we might be looking at a situation similar to the great depression, especially if people start making bank runs.
  
  I don’t know if people will hit the banks.
  Back on black Tuesday, most things were bought with cash.
  Now everyone either uses debit or credit. I don’t think there will be the big of a demand for cash unless one of the big banks says it has run out.
  I do think that the credit market might implode within 6 months, as many Americans will probably forgo paying their debt to buy food for the week, and the credit companies will not have the capacity to squeeze blood from that many stones at once.
  If consumer credit crashes, then the consumer economy essentially collapses, as a huge chunk of the population essentially lives on a knife edge between their bank balance and credit limits.
  I give it at least a month before this all really starts to go tits up.
  Anyway, I’m gonna go buy some waterproof storage bins and about 500 pounds of rice and beans tomorrow, just because that’s my new hobby.
- TIL 2000 and 2008 were just fluctuations due to big changes.
  Stock market peaked 19 feb, 1.5 months ago. It has lost 17% since then.
  That's an awfully long and persistent fluctuation.
  
  Annual average growth of the stock market is around 7%. That means some years it might be +21% and the next year -5%. Now we're about 2% on the negative from a year ago. That's not great but it's not catastrophic either. I bet that in few years this particular dip is just one of the many and it'll barely even register on the graph.
- Ask the economists if restricting trade will lower gdp or not. I have a tiny suspicion this isn’t a “fluctuation”.
- We do have evidence of the way this is almost guaranteed to go, however. There have been 2 other times in US history where the government has enacted massive tariffs on international trade: in 1828 and in 1930. The results of both times were the worst economic depressions the country has ever faced, and the world in the second case. The economy only recovered the second time thanks to the planned wartime economy, lend-lease program, and post-war rebuilding which cemented the dollar as the international currency, and the consequences of the tariffs were that the party responsible for them didn't hold power again for 60 years.

174 comments