In a scene reminiscent of the atmosphere before Black Monday 1987, U.S. stocks saw a sharp collective drop last Friday, driven by shocking job data!
🧨 Stormy Friday details:
Jobs report (NFP):
Only 73,000 jobs were added, while expectations were for 106,000 jobs, and June's data was shockingly revised from 147,000 jobs to only 14,000!
Fiery political reaction:
President Trump fired "Erica McEntarfer", the Commissioner of the Bureau of Labor Statistics, accusing her of falsifying numbers to tarnish his image, which increased doubts about the transparency of economic data.
Political escalation against the Fed:
Trump continues his attack on Jerome Powell, demanding a rate cut, while the Fed experiences unprecedented division since 1993, with two members opposing the decision to hold rates steady at the July meeting.
📊 Market performance on Friday:
Dow Jones falls by 1.23% (approximately 542 points)
Nasdaq falls 2.24%
S&P 500 falls 1.6%
U.S. Dollar Index falls 0.8%
Two-year and ten-year bond yields decline significantly
Brent crude prices fall 3.94% to $69.67
Texas crude falls 2.79%
Gold prices rise 1.5% and bullion jumps 2.25% to $3,362.88
Amazon falls 8.27% due to disappointing earnings and high spending on AI without tangible results
⚠️ Are we on the brink of a "new Black Monday"?
Markets are currently facing a lethal mix of:
Disappointing economic data
Rising political turmoil
Division in Fed decisions
Overvalued assessments of major stocks
But the difference between today and 1987 is that Black Monday came after a series of consecutive declines, while what is happening today resembles a "surprise shock" that could trigger selling algorithms suddenly and fiercely!
🕯 A quick glance at Black Monday 1987:
On October 19, 1987:
The Dow Jones index crashed by 22.6% (508 points), the largest one-day drop in its history at that time.
Programmed trading, excessive speculation, rising interest rates, and a trade balance deficit are all factors that led to the crash.
Confidence has completely collapsed, and investors rushed to exit the market en masse.
🛡 Gold.. the safe haven returns to the forefront
Just like in 1987, the same behavior is repeating now:
Escape from stocks
Turn to gold and bonds
And a move away from high risk
🎯 Financial maestro recommendations:
Don't underestimate political events and their impact on the market
Watch gold and dollar movements as early signals
Beware of random entry during opening sessions
If pressures continue, we may witness a "new version of Black Monday"
