Mark down March 3, 2025. That was the day Wall Street finally realized that US President Donald Trump was serious about tariffs. On Monday, the S&P 500 fell nearly 2 percent as Trump confirmed what we at the Atlantic Council predicted in February—that the tariffs on Canada and Mexico were not mere threats, but actually likely to be implemented. The stock markets continued to fall on Tuesday as investors processed the news.

  • Placebonickname@lemmy.world
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    8 days ago

    I don’t think I’m gonna be wrong about this, but I bet that all of the points that were lost in the Dow Jones and the NASDAQ and the S&P 500 index funds will probably be recovered within the next couple of days because companies will remember that in order to keep all their money all they have to do is raise the prices on everything….

    • modeler@lemmy.world
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      7 days ago

      Yeah, but let’s consider what happens:

      • Tariff applied
      • Prices go up
      • Supermarket trolleyfull becomes more expensive
      • People have less money to buy other things
      • Companies sell less
      • Company profits fall
      • Stock valuation drops
      • GDP falls

      That’s why the Dow Jones and S&P are lower - this shrinks company profits and US GDP.

    • Soup@lemmy.world
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      8 days ago

      Until no one can afford their stuff and drop it. Capitalism is hitting the inevitable point where infinite growth is impossible as it involves making the customers poorer which is not exactly great for business.

        • Soup@lemmy.world
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          7 days ago

          Yes, but they keep saying that the only way to do it is by having strong unions, workers’ rights, and are demanding higher pay. Higher pay! Like we’re made of money!

      • kenopsik@lemm.ee
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        8 days ago

        I almost feel like this was the intention. Bring the stocks down so his billionaire buddies can buy up more shares and then wait for the market to come back up. It’s effectively stock market manipulation, but now it’s protected because they can argue it’s an “official act”.

    • CharlesDarwin@lemmy.world
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      7 days ago

      I think someone else here said it, but because he keeps making threats, then retracting them, then making them, then retracting them again, I wonder if it’s basically insider trading being done by donvict and his oligarchs.

    • gravitas_deficiency@sh.itjust.works
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      8 days ago

      I think what’s happening is that the finance people are finally realizing that the long term implications of this shit are going to be absolutely catastrophic. So sure, there’s probably gonna be a bunch of spikes as HFT farms spike demand. But medium- to long-term, shits fucked.

      • CharlesDarwin@lemmy.world
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        7 days ago

        I lurk on the bogleheads subreddit. Some of the people seem to have a fair bit of money they are trying to save and build with. I’m quite sure more than a few may be multi-millionaires. I’ve seen several threads where they are genuinely concerned about the possible destruction donvict and his dogebags are doing, and are planning.

        Things like - completely fucking the bond market for one. Destroying FDIC. Ending the dollar as a worldwide reserve currency.

    • ubergeek@lemmy.today
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      7 days ago

      Higher prices push down number of units sold… And push buyers outside of the US, to avoid the US products.

    • Pk_thunder@sh.itjust.works
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      8 days ago

      It honestly is suspicious the lack of drop to a greater extent, almost like they’re taking to DOGE cuts and federal firings and artificially keeping the market up with stock buy backs

    • rayyy@lemmy.world
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      7 days ago

      A lot of people are maxed out on their credit cards already. A mass CC default isn’t too far off without massive the increases.

      • Placebonickname@lemmy.world
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        7 days ago

        I wouldn’t want this for the families, but I would love to see major credit card companies and banks, default and crash

        Not because I think it would fix the economy, but because I think they’re stupid for not seeing that high prices, high inflation, tax tariffs and then a lot of borrowing from the public is exactly what happened right before the big crashes in the 1920s