Stocks tumble on weak U.S. consumer confidence

U.S. consumer confidence this month unexpectedly fell to its lowest since February, intensifying concerns about the economy’s near-term prospects.

The Dow Jones Industrial Average was down 516.54 points, or 1.48%, at 34,352.83. The S&P 500 was down 88.15 points, or 1.98%, at 4,354.96, and the Nasdaq Composite was down 408.64 points, or 2.73%, at 14,561.33, both tracking their worst day since early May.

stocksReuters:

U.S. consumer confidence this month unexpectedly fell to its lowest since February… The reading, coupled with a rising trade deficit and an expected decline in vehicle sales, brewed fresh concerns about the state of consumption in the country, which is a key driver of economic growth.

“It seems like all these headwinds are hitting at the same time – potential higher taxes, higher inflation, uncertainty about the Delta variant, earnings and higher interest rates … are weighing heavily on the indexes,” said Ken Mahoney, chief executive officer of Mahoney asset management.

Progress on U.S government funding negotiations was also in focus with Democrats scrambling to prevent a government shutdown and a potentially economically crippling U.S. credit default on Tuesday while also trying to agree on a mammoth tax and spending package.

Shares of Apple, Microsoft Corp, Amazon.com Inc and Google-parent Alphabet Inc dropped between 2.9% and 4%.

Federal Reserve Chair Jerome Powell said the U.S. economy is still far from achieving maximum employment in a hearing before the U.S. Senate Banking Committee…

MacDailyNews Take: Obviously, a healthy U.S. economy is essential to Apple, as America is Apple’s largest market, by far.

Again, it’s best to get a handle on inflation, if you know how, while you still can.

Inflation is repudiation. — Calvin Coolidge

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

20 Comments

  1. Democrat administrations, exception JFK, tax and spend policies for over 50 years have NOT HELPED turn around the economy. The arrogant know it alls, know NOTHING regarding building the economy and President Trump schooled them in a couple years out of the gate.

    This week consumer confidence down add in looming government default the Dems will own, bipartisan stimulus vote canceled yesterday for lack of votes and arguing about 3.5 trillion huge wasteful spending bill and what comes first.

    Safe to say it will get worse under the most clueless administration of ALL…

    1. The one thing you will never see from any republican: Actual data!

      Ronald Reagan 186%
      George W. Bush 101%
      Barack Obama 74%
      George H.W. Bush 54% (4 years)
      Gerald Ford 47% (2.5 years)
      Jimmy Carter 43% (4 years)
      Richard Nixon 34% (5.5 years)
      Donald Trump 33%? (4 years)
      Bill Clinton. 31.6%

      If you adjust for time in office: (Deficit per 4 years.)

      R- Ronald Reagan 93%
      R- Gerald Ford 75.2%
      R- George H.W. Bush 54%
      R- George W. Bush 50.5%
      D- Jimmy Carter 43%
      D- Barack Obama 37%
      R- Donald Trump 33%?
      R- Richard Nixon 24.7%
      D- Bill Clinton 15.8%

      Out of nine administrations, we have four Republicans with more deficit spending than any democrat! But you are dead certain that everything in the last 50 years is the Democrat’s fault. Only three of those nine presidents were even democrats.

      1. The figures posted are not backed up by links to credible news sources. That said, your post is CLASSIC DEFLECTION.

        I’m not talking about deficit spending dummy. I’m talking about irresponsible Democrat administration huge spending stimulus initiatives that SOLVE NOTHING and add trillions to the national debt.

        The Democrat Big Three:

        LBJ ~ Great Society Act of 1965.

        “Johnson promised to be an activist president and remake America into the Great Society. LBJ was obsessed with being remembered for his Great Society. Well, he got his wish. He is praised by progressives for his Great Society. But to others his illusion is an expensive memory. Progressives have never learned: “There’s no success like failure, and failure is no success at all.” — The Center Square

        Obama ~ The American Recovery and Reinvestment Act of 2009

        Biden ~ The two bills that did not pass as of this moment the 1.2 trillion infrastructure bill and the 3.5 and up trillion human infrastructure bill.

        What has all the Democrat spending accomplished? Problems solved? Well, unless you’re an idiot you already know.

        Trump: Added $6.7 trillion to the national debt.
        Obama: The undisputed champ of ALL TIME added $8.588 trillion to the national debt.

        Biden after seven months in office is proposing to add $4.7 trillion to the national debt a presidential record for the first year in office.

        We shall see…

        1. “Biden after seven months in office is proposing to add $4.7 trillion to the national debt a presidential record for the first year in office.”

          CORRECTION: On March 10, 2021 Biden passed $1.9 trillion COVID-19 relief bill. That would bring the total to $6.6 trillion, if the other two bills pass, in just 8 months.

          President Trump in four years added $6.7 trillion to the national debt. Biden closing in and possibly will surpass Trump after four years…

    2. Gosh, it seems that someone has forgotten who was POTUS for 1993 – 2000.

      Not only was the Stock Market up (it tripled), unemployment averaged below 6% and inflation below 3% … the Feds had a budget surplus.

        1. And yet here we are, 25 years later, and healthcare is still a huge economic problem for the general public, eating up basically a third of the income of a median household.

          The fact that Insulin costs 3x more here than anywhere else in the world just shows how utterly broken the US healthcare system still is.

          But sure, keep on using the “S” word to try to scare & deceive folks.

          1. You are correct Obamacare did not work and Biden will make it worse if the $3.5 trillion dollar human infrastructure bill gets passed. Heard it on the news this morning some features will be removed…

            1. I wasn’t referring to Obamacare, but Hillary Clinton’s initiative in the 1990s that TT labelled as “socialist”.

              Regarding ACA, it did pass and it did accomplish a modest reduction in the rate of growth in healthcare costs, going from an average of +5.7%/year down to +3.7%/yr.

              Finally, the current $3.5T ten year Infrastructure bill proposal: unlike the 2017 Tax Cut, it actually has had its funding identified, so if one honestly is concerned about the deficit, you should be advocating that the 2017 bill should be immediately rescinded. Plus when the same accounting methods are used for both, the 2017 Tax Cut actually is costing us $5.5T

            2. -HHS

              “I wasn’t referring to Obamacare” I did not say you were.

              But when you acknowledge the failure of healthcare in the U.S. the supposed Gold Standard Obamacare was supposed to fix it once and for all. So logic dictates I agree with you it was a failure whether you called it by name or not.

              Pointy head Leftists are so caught up in specific words used, like socialized medicine, they always miss the overall meaning and point of whatever they are talking about…

            3. No, you’re just being dishonest. Again.

              Because I didn’t say ACA was a failure. That’s your dishonest word twist attempt at a Goalpost Move.

              Everything gets hyped & oversold in its marketing, and anyone paying attention during the sausage-making knew that before it even came up for a vote, the ACA couldn’t ever be a “Gold Standard”. Fortunately, it did have some benefits for the general public: even a small step forward is still progress.

              That you’ve chosen to be disingenuous in this fashion shows the readership that you’ve lost the debate on its merits …

              … and that was before you stooped to lame Ad Hominem name calling: that action shows that you know that you’ve lost too, even as you’re unable to publicly admit it.

  2. Jen Psaki headlined the reason to be confident when she said today that it would be a surprise and undesirable if businesses raised prices as a result of a tax increase.

    Did she get hit in the head recently?

    1. Unbelievable. Negative votes imply principled disagreement and or, disapproval based on personal narrative.

      The 1st shows a complete misunderstanding of basic economics…an indi, or business doesn’t incur added expenses without spending less and or, converting the increased expense to higher prices. There’s little in that story that has to do with greed. As well, business aren’t charities and expecting them to be while one sits on the coach and “demands” they be so is blindness.

      If the 2nd, you must be a liberal and believe collectivism and centralized economies are a good bet.

      3rd; you were hit in the head too.

  3. “U.S. consumer confidence this month unexpectedly fell to its lowest since February, intensifying concerns about the economy’s near-term prospects.”

    UNEXPECTEDLY?!?

    With Democrats back to abusing their authority and going back to the prick dictators they are with their ‘take the shot or get fired’ BS, how can this possibly be encouraging news that would give consumers confidence?

    The new national anthem at a sporting arena near you. F Joe Biden (clap, clap, clap-clap-clap) F Joe Biden (clap, clap, clap-clap-clap) F Joe Biden (clap, clap, clap-clap-clap)

    Me personally, I’m in my recliner with my popcorn watching TV, waiting for an entirely different meaning of “take the shot”!

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