Impact to US Economy

There’s an old expression on Wall Street. Stocks stair-step higher and go down like jumping out a window. What we saw on Thursday and Friday morning in the premarket is more like off a high rise. On Thursday, stocks lost $3.1 trillion, their worst day since back in March of 2020. The S&P 500 fell nearly 5%. Tech stocks led the Nasdaq 6% lower. The Russell 2000 dropped 6.5% and the Dow Jones Industrial Average lost 4%. Ten of the eleven sectors in the S&P were lower on Thursday with energy turning in the worst performance, down 7.5%. The sole sector that was up on the day was consumer staples, gaining 0.7%. Digging beneath the surface, the carnage was even worse with a number of stocks, which were already down on the year, falling 10%. Apple, which was down 9% on Thursday experienced the second largest notional loss in the market’s history. Looking at the premarket, the selling looks set to continue.