The S&P 500 fell 4% shortly after the start of negotiation on Monday, officially putting the reference index on the bear market territory. He then reversed some of these losses. But if the market closes the way it opened on Monday could be a really historic day on the stock market – and not in the right direction.
If the S&P was to close more than 4% on Monday, it would be the third day of consecutive negotiation, it recorded a drop of more than 4%. And it would be the first time that the S&P 500 has undergone three consecutive drops of more than 4% in almost a century, since the stock market crash of 1929 which marked the appearance of the great depression.
The announcement of President Donald Trump last week radical prices on almost all American trading partners sent actions to their worst week since the height of the coronavirus pandemic. Actions had their worst day in five years Thursdayand then did it on Friday.
The bleeding continued on Monday. Shortly after 10 am, the S&P 500 fell 2.3%, losses of 4% that saw it join the nasdaq composite heavy of technology in a lower market (a drop of 20% or more compared to a recent peak). The NASDAQ was down 1.6% and the term contracts on the industrial average of Dow Jones dropped by 2.7%.
The shares have plunged abroad, the main Hong Kong market index plunging 13% in its worst day since the 1997 financial crisis in Asia. Actions have also dropped sharply in Europe.
Trump, who has taken a tone provocative in response to the sale of the prolonged market, said late Sunday Sunday, that his commercial policies will bring a systemic change necessary for the American economy.
“What will happen on the markets, I cannot tell you,” the president for journalists told Air Force One on the way back to Washington for a weekend in Florida. “I don’t want nothing to drop. But sometimes you have to take medication to repair something. ”
Bill Ackman had a warning for Trump Sunday: take a break on the trade war on the risks that crush the economy.
“The country is 100% behind the president of the repair of a global prices system that has disadvantaged the country,” said Ackman, a billionaire CEO of Pershing Square Capital Management, said in a long post Sunday on x. “But business is a game of trust and confidence depends on confidence.”
“By placing massive and disproportionate prices on our friends and enemies and thus launching a world economic war against the whole world, we are in the process of destroying confidence in our country as a trading partner, as a place to do business and as a market to invest capital,” continued Ackman. “The president has the opportunity to call a 90 -day stoppage, to negotiate and resolve unjust asymmetrical tariff agreements and to induce billions of dollars of new investments in our country.”
“Alternatively, we head for a self-induced economic nuclear winter and we have to start silent,” he added. “May the cooler heads prevail.”
