I think this might be the beginning of it. A bunch of tech companies released some pretty dismal financials, which (along with continued high interest rates) is freaking everyone out.
It wasnt just tech either though, both McDonalds and Starbucks are doing worse than expected, and a lot of economist/stock people look to those companies as indicators for how the poors and bougie poors are doing with spending.
Amazing that you can't just jack up prices of commodities without raising wages forever and not have line go up more and more steeply each quarter. Nobody could have predicted that.
Markets have been getting more volatile for weeks, making these days more frequent. Japan's stock market fell 12.4% today. This is partly because the yen strengthened 10% in the last month, which means Americans will not want to buy treats from Japan because they are more expensive. They also thought Jpow would let us have low interest rates again and he did not, so they also think we will not buy Japanese treats because we won't have jobs. The Japanese stock market is the 3rd largest in the world. Big losses on a big market will spread because everything else will get sold to buy the Japanese dip. It's also going to cause monetary contraction because of levered speculation. Large amounts of money is called into existence to buy stocks and that fuels demand in the real economy, and when those stocks go down, the loss in equity is large, stocks are sold at a loss to repay the borrowing, contracting the money supply and lowering buying power and demand across the whole market. But one never knows when it will stop.
Why's it crashing? AI bubble busted?
Long term investors offloading the bag under the pretext of "weak US jobs numbers" and general interest rate stuff.
I think this might be the beginning of it. A bunch of tech companies released some pretty dismal financials, which (along with continued high interest rates) is freaking everyone out.
Add that people don't like ai, there's not a business case for it yet, and it's very expensive to run/train
Love to burn 1000 hectares of the Amazon to generate a picture of Trump with huge gazongas
Honestly this is a better use of resources than most AI related projects
It wasnt just tech either though, both McDonalds and Starbucks are doing worse than expected, and a lot of economist/stock people look to those companies as indicators for how the poors and bougie poors are doing with spending.
Amazing that you can't just jack up prices of commodities without raising wages forever and not have line go up more and more steeply each quarter. Nobody could have predicted that.
Markets have been getting more volatile for weeks, making these days more frequent. Japan's stock market fell 12.4% today. This is partly because the yen strengthened 10% in the last month, which means Americans will not want to buy treats from Japan because they are more expensive. They also thought Jpow would let us have low interest rates again and he did not, so they also think we will not buy Japanese treats because we won't have jobs. The Japanese stock market is the 3rd largest in the world. Big losses on a big market will spread because everything else will get sold to buy the Japanese dip. It's also going to cause monetary contraction because of levered speculation. Large amounts of money is called into existence to buy stocks and that fuels demand in the real economy, and when those stocks go down, the loss in equity is large, stocks are sold at a loss to repay the borrowing, contracting the money supply and lowering buying power and demand across the whole market. But one never knows when it will stop.