Wall Street Panics. Stocks have worst single day crash in 4 years. Analysts blame the “excellent May jobs report” . . . ?

Photo above – Wisconsin's “Fireball” roller coaster riders are rescued a week ago, after they were left hanging upside down for hours.

NASDAQ is off 4%. S&P index nearly 3%. The market is still way up compared April, but still . . . down 4% in a single day? Wall Street hasn’t a day this bad since the Biden administration.

According to pundits (see Daily Mail link below) the culprit is a “good jobs report”. Hundreds of thousands of jobs created in May, despite a counter narrative from the same pundits that AI is destroying jobs at a record pace. Cognitive dissonance. Somebody has lost their mind, no?

Allegedly Wall Steet believes the incoming Fed Chairman will raise interest rates, because 170,000 new jobs is a clear and present danger. Well, he might. But you don’t get a spectacular mass-crash like yesterday afternoon because of interest rate daydreams. These crashes are computer automated stop loss trades course. Insurance which wall street traders load into their systems on Friday, because nobody wants to go to the Hamptons or Marthas vineyard at 5pm Friday and leave a bunch of money sitting on the table.

The real narrative - America has had 4 months of war, AI stocks are vastly overvalued. Oil supplies at record lows, and pump prices are over $4. And there's an additional $1.7 trillion in deficit spending so far in just the first 5 months of the year.

A good news jobs report would be the last thing a rational investor should worry about.

At this point, readers are invited to reply with their own expert links, showing why today’s AI bubble isn’t going to have the same tragic outcome as the dot-com bubble. There are a LOT of articles like that out there. Serve 'em up, boys and girls.

In case you don’t keep track of these things, Fed Funds reached a 20 year high (5.33%) in August 2023. No flash crash. But it was probably enough to spook voters/investors already worried about Joe Biden's presidential campaign handoff to Kamala Harris.

We are NOT winning the Vietnam – er, I mean Iran – war. Gas prices are over $4 a gallon in most places. Shopping malls are going dark again. The national debt is $39 trillion - $350,000 for every family in America.

If you don’t have a family, and have just one mouth to feed (your own), don’t worry. Your share of the national debt is only $100,000.

I’m just sayin’ . . .

Wall Street panics as stock markets crash deep into the red despite the excellent May jobs report | Daily Mail Online