Markets Take a DEEPER DIVE!
All US markets crashed hard on Friday in an epic landslide as stocks took a downhill thrill ride for the record books. Bonds and Bitcoin joined the collapse!
The stockslide down the mountain in a few stocks on Thursday that I warned, even as many other stocks soared, could be the likely start of a major market crash, developed into a thunderous roar on Friday. It swept the NASDAQ another 4% over the cliffs into the largest point-drop (-1,121) in NASDAQ history … as in ever! $1.75-trillion got wiped out in the overall stock market in a single day! That’s what I call some sudden realization of the kind I warned could develop very quickly!
Suddenly, the mountain moved, as Trump would like to say, “like never before! No one has ever seen anything like this before!” At least, not in the high-performing NASDAQ. That was one for the record books. The Wall Street fear gauge also made its biggest leap in two years, showing definite panic in the air.
Wall Street has been anticipating that negotiations to end the war will eventually be successful
Wall Street is dumb. Of course, if Trump totally TACOs out after Friday’s historic market mess, then maybe the war will suddenly end. It could be his biggest TACO yet. -OR- … (We’ll get to that.)
The stocks that couldn’t crash brought everything down!
Again, it was the undefeatable, unsinkable AI-related stocks of the future that gave all the momentum to the slide with chip stocks especially crumbling all over the mountainside, which is how I’ve been saying for a long time the next big crash would happen. It would be a strong echo of the dot-com bust, though likely bigger. A little bit of big stuff would slide at first, then more, then everything would start to move. And this could happen very, very quickly, I said:
And that was exactly how the dot-com bust began. First, people thought tech couldn’t fall, but then the many companies that had bad earnings reports took some big dives. Eventually many of those got wiped out entirely. Then everything started to slide over the course of more than a year—almost two years. Even those that survived took years to recover from the massive rotation that picked up steam as investors woke up to realize they could not keep rewarding earnings non-performance forever….
Rotations like this in stocks are how major crashes often get started. A big piece starts to slip here, then another over there, and then the whole mountainside starts to move…. With major stock avalanches, big companies can absorb things for so long, then they start to go critical, and suddenly major slabs of the mountain start to move. (“Past the Point of No Return: The Economic Collapse Is Happening!”)
But, hey, at least, Donald McRonald the clown prince—er, uh king—told the market it was stupid, too, albeit for opposite reasons than I have given for calling it that. He said it should have gone up on Friday because of a great jobs report. I’ve been saying it was idiotic to be going up at all during the months of this war with the obvious troubles that are falling upon us because of the war. It was in denial because of its greed, fueled by his endless lies about the war, denial that even made it think the high-tech leaders could not make the market fall as they did in 2000 and 2001. But, hey, the stock experts were saying AI couldn’t lose. Who am I to say otherwise?
True, the Donald’s “great jobs report” was above expectations, as he claimed, but expectations were extremely low (at a paltry 85,000 new jobs). Truth is the 172,000 added jobs were not much above the 150,000 breakeven-with-population-growth line that separates recessionary job growth from real growth. So, it was not strong, and especially not something that looks like Making America Great Again! In fact, it’s pathetic when a president has to boast about a number like that as a fulfillment of MAGA.
It was far from “the greatest report ever” as the Donald likes to quack about everything he accomplishes. It just didn’t stink like previous reports, and a breath of fresh air (or, at least, non-putrid air) was enough for the financial press that likes to sift out the glints of fool’s gold to call it a “good report.”
The report didn’t do well for bonds, though, which continued their pricing landslide on Friday, just like they did on Thursday, forcing yields on the US10YR to solidly break above 4.5% all day long as soon as the drizzly jobs report came out.
As if all of that was not enough new rock breaking free on the mountainside, BlackRock, liquidated ALL of its Bitcoin holdings on Friday! They got rid of $250,000,000 in five minutes. It looks like they are getting ready for next week!
As Hal Turner wrote at the close of markets,
EVERYTHING THAT COULD GO WRONG FOR MARKETS WENT WRONG TODAY!
Shown another way, Friday delivered a tech and crypto bloodbath:
And that’s what a landslide looks like once all the sectors that were cracking up suddenly see all stocks in that sector give way together.
Friday’s market mayhem—not acting like it was supposed to in the feigned wisdom of market makers—left the financial press scrambling for an explanation of why the unbreakable was cracking up so badly all of sudden (even though I clearly laid out why it would do that before it happened right here where I do my best to deliver “the news before it happens”). They gave the lamest explanation:
The catalyst for the chip turn was unclear. Some disappointment in Broadcom’s failure to raise its AI chip outlook Wednesday night caused the group to lose ground on Thursday. But Friday’s selling reached a new level of intensity. A spike in Treasury yields following a much stronger-than-expected jobs report for May didn’t help the case.
Commented Turner, in keeping with my own perspective of these lame writers,
Stocks, Commodities, Crypto -- ALL DOWN today, and no one is saying exactly why.
When delusions break
That is because it doesn’t compute with their beliefs (and because no mainstream financial writers read here). I wrote out why the market was in a stage of imminent collapse on Thursday after having laid the groundwork for the past year: Tariff wars and ground wars have cracked and weakened the economic rock considerably for the past year. They have built up inflationary pressures that will become nearly impossible to calm. Throughout the last few months, endless lying by Donald Trump about this catastrophic war have set up a major oil calamity that is now poised like a huge overhang above our heads, obvious to some, but obscured by his lies to the many who want to believe money is to be made.
Lies cause delusions to grow. Lies are what delusions are built on. Lies matter. On Wednesday, I noted with caution that Trump’s endless lies were no longer working. I had been warning for weeks that his endless lying would eventually get everyone to this point where no one trusts him to negotiate with, and finally even the markets would not trust him. Then, on Thursday, all markets started to show signs of dangerous movement (even as the overall stock market shot upward, which no doubt made my claim that economic collapse was now happening counterintuitive to many). Part of the danger was in how many prices in stocks, bonds, Brent and crypto finally ignored Trump’s vain reassurances—the kind of spreading tremors and individual tumbling stones—dust moving in cracks all over the mountainside—where you sound the alarm and warn the city below that the mountain is starting to collapse.
Sometimes it only takes a few small moving rocks to release a huge overburden that is ready to slide. On Thursday a few critical stocks fell hard as most stocks rose. They were the harbingers of what was about to unfold. On Friday, the media couldn’t understand why the mountainside slid because they had no deep understanding of its many faults or of the shaky ground the whole edifice was all built on—their delusions that they believed in because they wanted to.
The few big guys that got clobbered on Thursday got clobbered again on Friday, but, this time, many others joined them, contrary to the beliefs of the market’s chief architects that high-tech can never fall (as faithfully recorded under the prevailing wisdom among mainstream financial writers over the past year). So far as I had seen, no one in the mainstream press had written that Thursday’s quirky drops in spots of the market while the overall market soared would result in Friday’s sudden collapse, but I did:
While the Dow soared a huge 900 points to another all-time high today, it didn’t do it for the usual reason. Money actually fled tech and moved into bank stocks and other more mundane or maybe safer investments. This looks like the start of a rotation, which happened orderly today, but rotations sometimes indicate people fleeing the longtime market leaders, and that can quickly go disorderly once momentum builds.
And so it quickly DID on Friday:
Shares in Broadcom were more than 6% lower after tumbling more than 12% on Thursday. Marvell Technology and Micron Technology dropped 12% and 11%, respectively. Intel dropped more than 9%, while Advanced Micro Devices fell 10%.
Those Friday falls, adding momentum to the drops that happened to a select few stocks on Thursday and the tiny start of such indicative moves the day before that, drove the first three of those top-listed stocks down into the bear’s den in just three days. Not bad. Half a week to more than a 20% crash in fake value! When the really big guys fall that much, that drives a huge slide of everything.
I had pointed out several other anomalies on Thursday as well, which looked like trouble was going to quickly spread to the broader market:
So, we went from a large losing day for stocks yesterday [Wednesday], to a major rotation day with some tech stocks taking big losses today, even though the market overall shot up. Yet, there were some even bigger losers outside of tech where poor earnings were not forgiven. Calvin Klein’s owner, PVY, experienced its biggest plunge since the flash crash of 1987. The company got decapitated today, losing almost a third of its value in one day. Again, the Iran war was tagged as being a significant contributor to that company’s stock crash:
Cracks were suddenly showing up in unsuspected and seemingly unrelated places as broad, hidden structural failure tends to do in any structure. In this case, it was areas completely outside of oil and tech where tariffs and the war were doing economic damage. I also pointed on Thursday to labor problems that showed deep, enduring failures in the labor market, irrespective of what Friday’s paltry jobs report showed to the positive on the surface when the president boasted of his jobs numbers. Market analysts on Friday also pointed along with Trump to the superficial overall jobs number. I pointed on Thursday before that report to quirky problems that showed signs of significant stress building beneath the surface of the labor market because it doesn’t matter that the paint looks good if the concrete is cracking.
I also pointed to some major signs of trouble in credit markets on Thursday.
All of that emerged on Thursday, but none of the mainstream media was paying much attention to any of those things. Yet, I made the audacious claim right in the title of my Thursday editorial that we had just moved “Past the Point of No Return: The Economic Collapse Is Happening!”
As I summarized,
There were several signs of major collapse today, ranging from merely shifting ground, to roaring rockslides, all among the crème de la crème of Big Tech.
Then on Friday nearly everything broke free.
Here is how it all slid away:
S&P 500 down -1.65%, wiping out $1.14 trillion.
Nasdaq down -2.60%, wiping out $1.11 trillion.
Gold down -3.38%, wiping out $1 trillion.
Silver down -6.9%, wiping out $280 billion.
Bitcoin down -6.31%, wiping out $80 billion. [Down 16% on the week.]
As bad as things burst into pieces on Friday, the regardlessly rosy glasses kept doing what rose-colored glasses do among the relentlessly dumb and greedy stock mongers:
“This is a bit of profit taking,” said Anshul Sharma, chief investment officer at Savvy Wealth. “The AI narrative still remains intact….”
Yeah, sure it does! Just “a bit of profit taking.” What a joke. The landslide couldn’t have anything to do with the worst oil crisis in world history starting to bring on what will likely be the worst inflation in US history from a war that was supposed to be decisively over a couple of months ago. Instead, we get this drivel:
“Expectations got more elevated than they thought, and I think even relatively good news can end up disappointing when it’s not as high as where the expectations are.”
Understatement of the decade. Disappointing good news doesn’t make markets cave in unless there are deep faults underneath the market. Are we supposed to believe that mere profit-taking in stocks is why bond yields have been soaring, too, then, taking down the value of existing bonds? It couldn’t be that both major moves are highly related to rampant stagflation that is likely to make the stagflation of 70s energy crisis look like a warm-up act before this economic catastrophe is over. Somehow that glaring possibility escaped every expert’s attention.
The Iranium build up is going critical
Meanwhile, as peace talks have apparently stalled while war slowly heats back up, the TACO king is now accused of “crabwalking” away from his pledge that Iran must and will agree to hand over all of its nuclear material.
Anyone who could have guessed the war wasn’t going “to end soon” like the president has continually said it will with an agreement by Iran to denuclearize, wave your hand.
(Hmm, it feels like someone just turned a big fan on in here.)
According to Zero Hedge,
Donald Trump’s language on the Iran peace talks has gone from “deal imminent”, to “a deal soon, maybe” to “actually, we really don’t need a deal”.
That, of course, is exactly where I have said his boisterous but vain talk is going all of this year.
Trump showed signs of crabwalking away from a key demand that Iran hand over its stockpile of highly enriched uranium by saying that he does not need a deal with Iran to secure the uranium, but that there was no reason to send US troops into Iran to do so because the uranium is “entombed”.
Translated: The Donald’s whole pretense for the Trump-Israel-Iran War, following his “total obliteration” of Iran’s nuclear program last summer, was … well, just that—pretense for a war by those hungry for war. If his current statement is true, he never needed a deal. He could have just kept the uranium entombed with an occasional missile strike or bunker-buster bomb every time Iran got close to digging it out.
Of course, that was the Haggith plan since last summer, not the Hegseth plan. If it really was all entombed, just keep it entombed, rather than starting an out-of-control Middle-Eastern war involving numerous nations that would turn into a quagmire, as it has!
If the president now comes back to the Haggith plan (which was also the plan of many others, of course ; ) then the war will end up as a major strategic loss for the US, as even the thoroughly pro-Trump Zero Hedge agrees:
Capitulation on the highly enriched uranium or the limits of Iran’s nuclear enrichment program shifts the needle back towards US strategic defeat, with potentially grave consequences for all who have prospered under 80-years of Pax Americana.
That is because it will firmly underscore how the US keeps losing regime-change wars—how the little guys can stand up to the big guys. I’m not saying Trump should keep doing the war. I’m just saying it means he’s really already lost the war he claims to have won because the regime hasn’t changed, nor has the uranium, and the gulf remains as closed as ever, while the US economy is falling apart in huge slabs that are now sliding down the mountain.
As obvious as that is, I still came across an article this week explaining what an unrecognized genius Trump is for how he is conducting the Iran war. It was right back to the old 44DDD-chess argument. Trump, the writer argued, is just playing far beyond the league of anyone with enough TDS to criticize his masterful execution of this war.
Trojan Trump
Trump is nothing but a Trojan Horse for true conservatives because he’s a man whose only center is himself. There is nothing about him I would recognize from the Reagan days as a true conservative. Rather than being strictly for the original intent of the constitution, as the word “conservative” denotes, he constantly finds ways to skirt it. What do we have to show for his past year-plus but a now crumbling nation economically, not a greater nation, a nation dishonored and distrusted around the world diplomatically, one that breaks every bargain it agrees to, a nation that threatens to take over its friends, a nation with less international trade, a nation much more deeply in debt than it was before Trump with not a shred of discipline toward becoming fiscally responsible left anywhere among the Trump brand of Republicans, a nation running a lot more useless wars started by the “Peace President” who said he would put an end to useless wars, more presidential profiteering and favoritism toward those who pay to play than Team Biden could even imagine on the Big Man’s rarest of cognizant days … and a highly successful coverup for all of Trump’s cronies in the Epstain crowd (and himself). Who has heard of Epstein lately? He sure managed to get that out of the public conversation!
America keeps getting more and more beat up by the wrecking ball who brought down the White House, and Friday gave loud testimony to how shaky things are getting. There is no surprise in this. This market collapse does not have me scratching my head like the mainstream financial press was doing the last couple of days. It was EXPECTED. THE MARKET’S ACTIONS DIDN’T SUDDENLY NOT MAKE SENSE. THEY SUDDENLY DID MAKE SENSE.
I point out how I have been saying this all along so maybe more people will tune in and believe my claim this week that the worst is yet to come from Trump’s presidency, (especially his war, but also the tariffs and especially the matrix of lies because lies DO matter). You can know worse is coming because the mountainside is sliding now, just as I said Thursday would likely come quickly see—stocks, bonds, crypto, and private credit, all of it—and the high-tech, industrial village below is seriously imperiled.
That said, don’t be surprised if the slide momentarily stops for a few days or even tries to rise back up the mountain. Given the relentless foolishness of this market, that’s quite possible. The worst is going to come, regardless, because renewed increases in oil prices are going to start showing up this month, as I also focused on Thursday. Those will drive opium-addled stock market into a far worse slide when it fully wakes up to reality.
Of course, the stock crash may not pause at all if the market has finally gotten religion, but I won’t hold my breath on this market having gotten wise that quickly. I suspect it may need more hard knocks on the head, just as happened during the extended dot-com bust. Why would it be different this time?
As Hal Turner summarized Trump’s yoyo world effectively on Friday evening,
Oh. Gee whiz. It’s late on Friday, the markets are now closed . . . . and once again, all the bad news comes out. What is this, about the eighth or ninth week we’ve seen this play? Peddle nonsense Monday-thru-Thursday that “a deal is coming” or “Negotiations are doing well” and then on Friday (after the markets close) it all goes to shit.
The morons who claim to be professional stock traders, and the dimwits who claim to be professional commodities traders, fell for it once again. Oil dropped in price (again) this week, despite the world being a full week closer to the “tank bottom” in several countries.
Here in the USA, we are now about four or five weeks away from “tank bottom” of the Strategic Petroleum Reserve, and the dingbats in the commodities markets dropped the price of oil AGAIN this week !?!?!?!?
Instead of using this time to build-in the prices we are going to see just a few short weeks from now, the so-called “professionals” are acting as though there isn’t much of a problem, and everything will be Rainbows and Unicorns real soon. Such people are living in fantasy land.
Nothing can stop the world - and the USA - from reaching “tank bottom” and when that comes, the price shock for gasoline and diesel fuel is going to absolutely HAMMER the general public. [That was the BIG point I made here at The Daily Doom Thursday and a time or two before that. It’s already a done deal, so it cannot be prevented even by ending the war today, which isn’t going to happen anyway. It’s just playing out as we keep draining the tanks of critical types of Middle-East oil that we need to mix with our own.]
The big question this weekend is, will the wheels fall completely off, and hostilities resume?…
The fact that everything is down today at the same time means either that something broke in the system OR whales are expecting the war in Iran to resume and are selling everything and taking down the entire market with them.
This sure couldn’t happen at a better time for Elon Musk’s long-vaunted IPO of Space-X on the stock market. That may turn into the biggest build-up of a boondoggle in history as it gets birthed into a vacuum. However, who knows what a relentlessly dumb and certainly desperate stock market might pour into Musk’s IPO against all odds in blind and desperate hope for another run of greed? I wouldn’t bet anything specific against the lunacy of this market that has only just this past week gotten schooled on reality, while all the financial writers still seem to be too stupid to figure out how something so perfect and practically indestructible as they believe the high-tech market to be could go so suddenly and spectacularly wrong.
“Just a little profit taking,” they said. Famous last words. Regardless of their inanity, the collapse will continue. Final delusions will be short-lived because real and now unavoidable price pain is coming throughout the world very soon, not just in oil, but in everything that oil eventually prices into. Rising AI job losses will make the pain worse, and they are rising quickly now.
Now that things are collapsing everywhere, will Trump pull the ultimate TACO move and give away the farm to Iran just to get out of this mess he created -OR- (the question I said at the top I’d come back to) will he get desperate and enraged and finally start bringing the genocide to Iran that he promised a month or so ago?
And we haven’t even hit “tank bottoms” yet! That event isn’t supposed to happen, according to Big Oil execs for another 2-3 weeks.
I think the big moves are going to happen quickly now because I believe all the major money has likely gotten wind of oil troubles that are going to turn dramatically worse around the end of this month and decided now is the time to unload. As I wrote Thursday in “Past the Point of No Return: The Economic Collapse Is Happening!” the markets’ first moves were fairly orderly, starting as rotation to safer stocks, but things could go disorderly in a day, and it seems that happened.
All US markets are now spiraling down simultaneously into a deeper dive. It’s an economic collapse due to fault lines that have been building stress for a long time, but Trump has done all he can to help stomp it down with his tariff madness that taxes Americans and diminishes trade, his endless off-and-on chaos, his relentless lying and total lack of personal integrity as exhibited with the Epstain Files, and, especially, his strikingly overt, utterly madcap imperial goals of conquest in hopes of being viewed someday as Trump the Great. He’s already building Trumphal arches and designing Rushmore monuments to establish his legacy as the Great One in stone.
All of that will take probably a couple of years to play out to its ultimate bottom, just as the dot-com bust did, because it is just that big! There is much to fall and a long way to drop, and it will come with all the upheaval of major attempted rescues along the way and more endless lies about how spectacularly well those rescues are going, which the market will want to believe.
Economania (national & global economic collapse plus market news)
Wall Street panics as stock markets crash deep into the red despite the excellent May jobs report
10-year Treasury yield shoots higher above 4.53% after strong jobs report
Money Matters (monetary policy, metals, cryptos, currency wars & going cashless)
Inflation Factors (too much money chasing too few goods due to weather, sanctions, tariffs, quarantines, etc.)
Wars & Rumors of War (including cyberwar, civil unrest and revolts)
Peace Talks Stall: U.S. Denies Iranian Claims Of Warning Shots At Destroyers
Pentagon raised threat of Israeli spying on U.S. to highest level
New Footage Reveals Ford Carrier Damage Far More Severe Than Pentagon Acknowledged
Digital Dominance (AI threats, transhumanism, hacks & cyberattacks, etc.)
Meta’s stock sinks on report company could raise tens of billions of dollars to fund AI push
AI bot web traffic has overtaken human web traffic, data shows
Scientists in ‘autonomous laboratories’ are starting to outsource work to robots
Political Pandemonium & Social Senescence (socio-political issues & events)
Ballroom donors won $50B in contracts after giving to Trump project, watchdog group finds
Whistleblower alleges DOGE planned to mark 2.7 million living people dead at SSA
Off-the-Beat News & Just Plain Offbeat News
Scientists issue first-contact plan as they await message from alien civilization
Doomer Humor
so why does gold and silver fall with everything else? isn't it supposed to be where capital flees to. Especially with the upcoming money printing to the rescue, the debt that constrains real inflation that will be prevented. the government really can't afford deflation.
All fiat fails ,when, ALWAYS !!! When Trillions become Zillions !! Before ?