U.S. stocks plummeted Monday as $1.4 trillion in market value vanished, prompting Fundstrat’s Tom Lee to draw a parallel between the single-day loss and America’s annual trade deficit.
What Happened: Lee, Head of Research at Fundstrat Global Advisors, highlighted on X that “the loss in equity market cap today equals 1 ‘trade deficit,’” noting the U.S. 2024 trade deficit for goods was $1.2 trillion. He urged the White House to move with “expediency to close these trade deals.”
The market rout saw the S&P 500 tracked by SPDR S&P 500 Trust SPY sink 2.36% to 5,158.20, while the Dow Jones Industrial Average tracked by SPDR Dow Jones Industrial Average ETF DIA tumbled 2.48%. The Nasdaq-100, tracked by Invesco QQQ Trust, Series 1 QQQ, fell 2.46%.
Why It Matters: Monday’s selloff came amid renewed concerns about Federal Reserve independence after President Donald Trump demanded immediate rate cuts and criticized Fed Chair Jerome Powell as “Mr. Too Late.” Trump claimed there’s “virtually no inflation” and warned of an economic slowdown without prompt Fed action.
The dollar weakened significantly, with the U.S. Dollar Index hitting its lowest level since early 2022. Meanwhile, alternative assets surged, with SPDR Gold Trust GLD rising 2.81% and Bitcoin BTC/USD gaining 2.42%.
Market volatility spiked with nearly 98% of S&P 500 companies trading lower. Among the few gainers were Fidelity National Information Services Inc. and Discover Financial Services, while healthcare and energy companies like Universal Health Services Inc. and Vistra Corp. suffered the steepest losses.
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