Did anyone else notice that this was merely a rotation from tech and communication sectors to consumer staples, utilities, healthcare, real estate, and finance?
Looks to me like it's a rebalance based on where the margin growth is expected for the next quarter.
TIL that wild is traditionally considered one syllable. In my area it's normally pronounced "why-ild", two syllables. Interesting friday afternoon factoid.
Yeah, it doesn't get interesting market wise until the Dow and S&P hit new highs with the Nasdaq lagging behind.
At least that's been the case in recent years. Not certain it was with 2018 and some folks are saying this is starting to track eerily similar to that.
Edit: But for now, this is just relief in markets for what got really beaten up in September while the Nasdaq gets a turn at getting really beaten up this time.
Yesterday it looked like that to me. However today doesn’t appear to be as much of a continuation of that rotational behavior. As data points, VDC down 2%, VHT 1.5%, VFH 1.2%. So today doesn’t look as much as pure rotation within equities to defensive sectors. BND sitting down 0.2% as well so not a simple equity to debt movement at surface level. I presume people are actually getting out to some extent. I agree with other posters that this does not yet look like the end of the world or anything (knock on wood) as there have been plenty of days since, oh, roughly the start of 2025, that have shown this much movement.
This is nothing but a rotation....some investors will reinvest elsewhere while post Midterms will determine direction of leadership which will determine where to put your money.
The Dow tumbled more than 500 points on Friday as a sell-off in tech shifted to other areas of the market and U.S. oil prices topped $100 a barrel amid rising fears that the U.S.-Iran conflict would flare up again.
Big Tech shares like Microsoft and Meta were trading lower, while chip stocks were rebounding slightly, with Micron Technology and Advanced Micro Devices ticking up more than 1%. On Thursday, many technology stocks pulled back as traders assessed the impact of outsized corporate borrowing and rising rates on artificial intelligence and other tech names.
The selloff widened on Friday. Dow-component American Express Company fell 3.7% after announcing it was cutting about 5% of its global workforce. Caterpillar also edged down 2%, adding pressure to the 30-stock index.
Other defensive stocks also were trading lower, with the consumer staples, utilities and healthcare sectors all lower on Friday. Moderna was down around 4%, while Merck is down 2%.
The 10-year Treasury
yield added 1 basis point to 4.9697% on Friday. The yield on the 30-year
was flat and the 2-year yield fell 2 basis points. The upward moves come after Treasury yields fell sharply Thursday as investors looked to U.S. government bonds as a safe haven
> "Well, Maria, you have to look past the surface noise that the mainstream media always fixates on, because if you actually dig into the fundamentals, Friday was quite frankly one of the most extraordinarily bullish days for the American economy that we’ve seen in years.
> Look at what’s really happening here. You see the Dow down 500 points, but what our models are telling us is that this isn't a sell-off at all—it's a massive, capital-efficient consolidation. Tech is simply transferring its historic momentum across the broader ecosystem. When you see American Express streamlining 5% of its workforce, that's private-sector lean optimization. That’s pure productivity acceleration. Those workers are being released right into an economy hungry for human capital.
> And oil crossing $100? That is an unbelievable vote of confidence in global aggregate demand. It proves our domestic energy producers are sitting on the most valuable assets on Earth. Look at semiconductors—Micron, AMD—they were up. The chips know where this is going!
> And look at the bond market. The 10-year yield holding firm just under 5% proves that investors are practically demanding to finance American ingenuity because the long-term ROI on this country has never been higher. When healthcare and defensive staples drop, Maria, that tells you the market is completely done playing defense. We are on the launchpad of a rocket-ship trajectory, and honestly, the only real risk right now is running out of headroom on the upside."
When Reagan first took office the market was about 1,000. And stocks used to go up or down 25 points on a big but not disastrous day. Today's market does not go up or down 1200 points in a day.
Dow is kind of a useless index. If you see it move more than Nasdaq and sp500 as is is today, it’s important to remember that it’s a price weighted index (not based on market cap or free float). The 2 largest companies (apple and nvidia) are weighted 8th and 21st in the index (out of 30). Goldman Sachs and caterpillar are the 2 most important stocks in the DOW by weight because their share prices are the highest.
direction is not magnitude though, correlation measures whether two assets move in the same direction at the same time, not how much they move. Massive gaps in total returns can still ocur over time. i.e., s&p 500 outperformed dow jones by 21% over trailing 5 years
The DOW is almost meaningless as a gauge - it's 30 stocks. And 500 points is currently less than 1%. The S&P which is a much better measure is down half a percent. This is a nothing burger until a larger trend forms.
Everything I'm reading tells me we're really in for it this time. When half our gdp comes from activity that centers around two companies that aren't even close to profitable and just going further into debt, you know its bad
I keep hearing conflicting statements about the health of the world economy. Some people are saying that all the money being pumped into Ai and data centres is going to lead to a massive crash, perhaps even a 1929 level depression and other people are saying that we are entering a "new golden age"
The question boils down to this. If Ai is so great how are we benefiting? I really don't see how it benefits me in my day to day life. I do see prices going up and my wages not keeping up. I don't see anyone hiring. But I do see crooks and felons in the highest reaches of government and blatant corruption. I don't care what they say. If that's Ai I don't want anything to do with it.
I think Lisa Cook has a reasonable take on the matter though. Like, yeah, it’s a potentially helpful technology, and maybe it will help with some economic challenges; however, it’s not going to solve all of the problems, and it’ll take a long time and a chunk of money to do it. (https://www.federalreserve.gov/newsevents/speech/cook20260928a.htm)
Donald Trump and Elon Musk literally told everyone exactly what they were going to do on the campaign trail in Pennsylvania. They bragged that within two years they were going to crash the world economy worse than it had ever been done so that they could rebuild something better.
We are on track for that to happen.
They went around smashing every single thing that they could find to smash and destroy and the country apparently has no checks and balances and stood by and let it happen.
But all the tessler bros are telling me the sweet manna of trillionaires will rescue us in our most severe time of need - it will trickle down like sweet brown honey from the boots of capitalism!
Why do the rats always leave the ship early? They were supposed to wait until after November elections. Yet for some reason, these rats can't wait so much as a single Mooch for their moolah. Is it the inflation? Is it the gas prices? Is it the expanding war? Or is it the fact that DJT and Putin shook hands in Anchorage to a pact that raises gas prices by expanding war while ignoring inflation?
eptesicusfuscus | 17 hours ago
Did anyone else notice that this was merely a rotation from tech and communication sectors to consumer staples, utilities, healthcare, real estate, and finance?
Looks to me like it's a rebalance based on where the margin growth is expected for the next quarter.
handsoapdispenser | 17 hours ago
S&P is down 0.1%. Not too dramatic. Can't stand headlines using nominal values to get a rise out of readers.
lazydictionary | 15 hours ago
SP is down 1.67% since Wednesday's close, and down 0.44% today. So no idea what numbers you are looking at.
Tricky_Let2806 | 14 hours ago
Oh whoa 1.67% after a couple days
HowdyDiarrhea | 14 hours ago
The market seems to be in a holding pattern. Hasn't breached the high after multiple attempts all year.
toothpicks-galore | 16 hours ago
its an attempted flight to safety where there is none
Final_boss_1040 | 16 hours ago
Bingo
eptesicusfuscus | 14 hours ago
Bongo
artisanrox | 11 hours ago
https://www.youtube.com/watch?v=lrl045-qJYU
eptesicusfuscus | 16 hours ago
Are you always this dramatic.
toothpicks-galore | 16 hours ago
I perform Hamlet in the park, soooo yeah, im kind of a big deal
Just_A_Dogsbody | 14 hours ago
in a wild wind storm
little birds look for safety
and find there is none
dogs_gt_cats | 14 hours ago
TIL that wild is traditionally considered one syllable. In my area it's normally pronounced "why-ild", two syllables. Interesting friday afternoon factoid.
Just_A_Dogsbody | 12 hours ago
lol yeah I actually looked it up just to be sure, I was doubting myself 🤣
ants_are_everywhere | 8 hours ago
I think I read this on zero hedge back in the day
nostrademons | 13 hours ago
Eh it isn't really. Consumer staples and durables are down significantly too, as is most of finance.
What's going on today is:
95Daphne | 8 hours ago
Yeah, it doesn't get interesting market wise until the Dow and S&P hit new highs with the Nasdaq lagging behind.
At least that's been the case in recent years. Not certain it was with 2018 and some folks are saying this is starting to track eerily similar to that.
Edit: But for now, this is just relief in markets for what got really beaten up in September while the Nasdaq gets a turn at getting really beaten up this time.
BackupSlides | 14 hours ago
Yesterday it looked like that to me. However today doesn’t appear to be as much of a continuation of that rotational behavior. As data points, VDC down 2%, VHT 1.5%, VFH 1.2%. So today doesn’t look as much as pure rotation within equities to defensive sectors. BND sitting down 0.2% as well so not a simple equity to debt movement at surface level. I presume people are actually getting out to some extent. I agree with other posters that this does not yet look like the end of the world or anything (knock on wood) as there have been plenty of days since, oh, roughly the start of 2025, that have shown this much movement.
RealisticForYou | 14 hours ago
This is nothing but a rotation....some investors will reinvest elsewhere while post Midterms will determine direction of leadership which will determine where to put your money.
saml01 | 7 hours ago
Whatever excuse helps you explain what you saw.
SonOfKong_ | 12 hours ago
Yes SCHD is up over 3% the last 5 days. I made over 10k yesterday.
Accidental-Genius | 8 hours ago
You only made 10K if you cash out.
[OP] One-Emu-1103 | 17 hours ago
The Dow tumbled more than 500 points on Friday as a sell-off in tech shifted to other areas of the market and U.S. oil prices topped $100 a barrel amid rising fears that the U.S.-Iran conflict would flare up again.
Big Tech shares like Microsoft and Meta were trading lower, while chip stocks were rebounding slightly, with Micron Technology and Advanced Micro Devices ticking up more than 1%. On Thursday, many technology stocks pulled back as traders assessed the impact of outsized corporate borrowing and rising rates on artificial intelligence and other tech names.
The selloff widened on Friday. Dow-component American Express Company fell 3.7% after announcing it was cutting about 5% of its global workforce. Caterpillar also edged down 2%, adding pressure to the 30-stock index.
Other defensive stocks also were trading lower, with the consumer staples, utilities and healthcare sectors all lower on Friday. Moderna was down around 4%, while Merck is down 2%.
The 10-year Treasury yield added 1 basis point to 4.9697% on Friday. The yield on the 30-year was flat and the 2-year yield fell 2 basis points. The upward moves come after Treasury yields fell sharply Thursday as investors looked to U.S. government bonds as a safe haven
OffalSmorgasbord | 11 hours ago
> "Well, Maria, you have to look past the surface noise that the mainstream media always fixates on, because if you actually dig into the fundamentals, Friday was quite frankly one of the most extraordinarily bullish days for the American economy that we’ve seen in years.
> Look at what’s really happening here. You see the Dow down 500 points, but what our models are telling us is that this isn't a sell-off at all—it's a massive, capital-efficient consolidation. Tech is simply transferring its historic momentum across the broader ecosystem. When you see American Express streamlining 5% of its workforce, that's private-sector lean optimization. That’s pure productivity acceleration. Those workers are being released right into an economy hungry for human capital.
> And oil crossing $100? That is an unbelievable vote of confidence in global aggregate demand. It proves our domestic energy producers are sitting on the most valuable assets on Earth. Look at semiconductors—Micron, AMD—they were up. The chips know where this is going!
> And look at the bond market. The 10-year yield holding firm just under 5% proves that investors are practically demanding to finance American ingenuity because the long-term ROI on this country has never been higher. When healthcare and defensive staples drop, Maria, that tells you the market is completely done playing defense. We are on the launchpad of a rocket-ship trajectory, and honestly, the only real risk right now is running out of headroom on the upside."
AllDataIsMyIP | 16 hours ago
When Reagan first took office the market was about 1,000. And stocks used to go up or down 25 points on a big but not disastrous day. Today's market does not go up or down 1200 points in a day.
sweetjenso | 11 hours ago
That’s why you look at the percent and not the points
IntroductionAgile372 | 16 hours ago
If your investment horizon is 30 years away, just gotta ride the wave
_Gobulcoque | 13 hours ago
> artificial intelligence
super intelligence.
Thank you for your attention to this matter.
insightful_pancake | 15 hours ago
Dow is kind of a useless index. If you see it move more than Nasdaq and sp500 as is is today, it’s important to remember that it’s a price weighted index (not based on market cap or free float). The 2 largest companies (apple and nvidia) are weighted 8th and 21st in the index (out of 30). Goldman Sachs and caterpillar are the 2 most important stocks in the DOW by weight because their share prices are the highest.
https://www.slickcharts.com/dowjones
lazydictionary | 14 hours ago
While I agree the Dow is bad, it has a stupidly close correlation with the S&P 500 (I think like a 0.97 correlation or something like that).
tommybeanys | 14 hours ago
direction is not magnitude though, correlation measures whether two assets move in the same direction at the same time, not how much they move. Massive gaps in total returns can still ocur over time. i.e., s&p 500 outperformed dow jones by 21% over trailing 5 years
Pub1ius | 14 hours ago
The DOW is almost meaningless as a gauge - it's 30 stocks. And 500 points is currently less than 1%. The S&P which is a much better measure is down half a percent. This is a nothing burger until a larger trend forms.
TheJuniorControl | 14 hours ago
Any reference to index movement in 'points' deserves to be downvoted into oblivion.
-Notxpected- | 12 hours ago
Everything I'm reading tells me we're really in for it this time. When half our gdp comes from activity that centers around two companies that aren't even close to profitable and just going further into debt, you know its bad
arkofjoy | 5 hours ago
I keep hearing conflicting statements about the health of the world economy. Some people are saying that all the money being pumped into Ai and data centres is going to lead to a massive crash, perhaps even a 1929 level depression and other people are saying that we are entering a "new golden age"
Thoughts?
[OP] One-Emu-1103 | 2 hours ago
The question boils down to this. If Ai is so great how are we benefiting? I really don't see how it benefits me in my day to day life. I do see prices going up and my wages not keeping up. I don't see anyone hiring. But I do see crooks and felons in the highest reaches of government and blatant corruption. I don't care what they say. If that's Ai I don't want anything to do with it.
crowcawer | 6 minutes ago
Prices will continue to hold high until the demand goes down.
This ai Gen-1 buildout is just over 50% finished, so make of that what you will.
The International Energy Agency's 2026 analysis projects global data center electricity consumption rising from approximately 485 TWh in 2025 to 950 TWh in 2030. (https://www.iea.org/reports/key-questions-on-energy-and-ai/executive-summary%C2%A0)
I think Lisa Cook has a reasonable take on the matter though. Like, yeah, it’s a potentially helpful technology, and maybe it will help with some economic challenges; however, it’s not going to solve all of the problems, and it’ll take a long time and a chunk of money to do it.
(https://www.federalreserve.gov/newsevents/speech/cook20260928a.htm)
alilhillbilly | 2 hours ago
We are not entering a new golden age.
That's crystal clear.
arkofjoy | 2 hours ago
But do you see another major collapse coming either?
alilhillbilly | 2 hours ago
Yes. Right after the election.
Donald Trump and Elon Musk literally told everyone exactly what they were going to do on the campaign trail in Pennsylvania. They bragged that within two years they were going to crash the world economy worse than it had ever been done so that they could rebuild something better.
We are on track for that to happen.
They went around smashing every single thing that they could find to smash and destroy and the country apparently has no checks and balances and stood by and let it happen.
arkofjoy | an hour ago
Thank you. That is what I thought. But I was hoping to be wrong.
eurekaanchor | 17 hours ago
But all the tessler bros are telling me the sweet manna of trillionaires will rescue us in our most severe time of need - it will trickle down like sweet brown honey from the boots of capitalism!
HowdyDiarrhea | 14 hours ago
>sweet brown honey
About that 😂
StormyPassages | 12 hours ago
Why do the rats always leave the ship early? They were supposed to wait until after November elections. Yet for some reason, these rats can't wait so much as a single Mooch for their moolah. Is it the inflation? Is it the gas prices? Is it the expanding war? Or is it the fact that DJT and Putin shook hands in Anchorage to a pact that raises gas prices by expanding war while ignoring inflation?
Is that why they leap headlong off the ship?