Investors’ initial euphoria gave way to selling as hopes for a December rate cut faded and bitcoin continued to sell off.
What began as a banner day for stocks turned into a major rout, as investors signaled ongoing skepticism about the longevity of the artificial intelligence boom and trimmed hopes of support from the Federal Reserve.
The tech-heavy Nasdaq fell 2%, and the broad S&P 500 index dropped by more than 1.5%. The Dow Jones Industrial Average, which tracks 30 top-tier stocks, declined by nearly 390 points. It had been up 700 points earlier in the day. Cryptocurrencies also shed billions in value: Bitcoin had fallen below $87,000 as of late Thursday afternoon, weeks after having set highs above $120,000.
The stunning turnaround added further unease to an already shaky economy that has forced households to trim budgets amid stubborn inflation and signs of a wavering job market. With an ever-increasing part of the economy’s principal driver — consumer spending — now reliant on affluent households, an extended market pullback could inflict wider damage.
RamRabbit@lemmy.world 9 hours ago
So, yes. But also, this is exactly why you hold index funds for decades, not days.
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givesomefucks@lemmy.world 8 hours ago
To be fair, retirement index funds only exist to make sure numbers constantly go up.
You can’t plan for retirement without investing in the stock market, so it’s a guaranteed influx of funds. No matter what happens, every paycheck a shit ton of “new” money goes into the market into predictable companies.
The wealthy 100% don’t just let their money ride. They know when a dips coming, because most of the time the dip is caused by them and their buddies pulling money out knowing they can buy back in cheaper later, because they have enough wealth to control the market.
We’re propping up the oligarchs in the hopes that we fall into a “good” time to retire. And the bad news is the oligarchs have a very real motivation to prevent that. They could have us working and putting more into the market, or retired and taking money out, they’ll always want us working because that makes numbers go up.
RamRabbit@lemmy.world 7 hours ago
Indexes like the S&P 500 increase an average of 8% per year when held for decades. It isn’t ‘getting lucky’ and ‘hoping’, it’s investing in your future.
A rising tide lifts all boats; helping yourself helps others. You can choose to help yourself, or be defeatist and ignore the best, time-tested strategy there is: investing part of every paycheck into index funds.
reddig33@lemmy.world 7 hours ago
Would be interesting to see that chart adjusted for inflation.