Weekly Market Recap: Stocks lost $2 TRILLION, Tesla Full Self Driving in China/Europe, California Earthquake Coming
Hey traders, Marcello here, founder of The Day Trading Academy. Welcome to the weekly recap of what’s been happening in the markets. Over two trillion dollars have been wiped out from the markets in just six days—that’s the size of Canada’s economy! We’ve also got updates from Europe post-pandemic, new research from Japan, and Moderna admitting to some troubling side effects. Plus, a neighborhood in California is literally moving so fast they had to cut off the electricity and declare a state of emergency. Let’s dive in.
Massive Market Wipeout: $2 Trillion Gone in Six Days
As I mentioned, over two trillion dollars were wiped out of the markets in just six days—about the size of Canada’s GDP. This has been the worst trading week since March 2023. Investors are growing concerned about a potential recession following a lackluster jobs report.
U.S. markets all closed negative, and the S&P 500 suffered its worst trading week since March. Canada’s markets also dropped over 2%. Globally, European markets were mostly lower, with the EuroStoxx index being the hardest hit. Latin American markets also closed lower, with Brazil’s Bovespa index down more than 1%. In Africa and the Middle East, markets were mixed, with South Africa down by 2.93%. Asia wasn’t spared either; Japan’s Nikkei fell over 6%.
Conspiracy News: Moderna and mRNA Side Effects
In the world of conspiracy news, Moderna has admitted that mRNA from its pandemic vaccine could potentially cause cancer, after billions of DNA fragments were discovered in vaccine vials. Additionally, German doctor Dr. Wolfgang Wodarg claims that the monkeypox outbreak is just a side effect of the vaccine, calling it nothing more than fearmongering at this point.
Venezuelan Prisons and Immigration
On the topic of Venezuela, there are reports that the country is emptying its prisons and sending the inmates to the U.S. There are even Venezuelan gangs reportedly taking over apartment complexes in places like Colorado and Chicago. Brace yourselves; things could get worse.
Cryptocurrency and Commodities Update
In crypto news, Bitcoin dropped nearly 9% this week, falling below $54,500. Keep in mind that crypto is extremely volatile, so this number could be different by the time you check.
Oil prices also took a hit, erasing all gains from 2024. Concerns about weak global demand, especially if a recession is on the horizon, led to the worst week for oil in nearly a year. U.S. crude dropped over 8%, and Brent (the international benchmark) fell by a similar margin.
On the other hand, central banks around the world bought twice as much gold as usual in July—37 tons to be exact. It’s a sign of financial institutions hedging against uncertainty. As always, don’t pay attention to what they say; pay attention to what they do.
For those of you who don’t remember, before the 2008 financial crisis, experts were telling us everything was fine. And then came the worst economic collapse in 100 years. The demand for gold remains strong, even as prices rise.
Economic News and Indicators
The global cacao (chocolate) deficit is also increasing. Bad weather and insect infestations in West Africa have pushed cacao prices to record highs, hitting over $12,000 per ton. While prices have stabilized around $7,000, the ongoing shortage is expected to drive them up again soon.
Precious metals were down across the board as recession concerns loomed. Gold dipped by 0.24%, staying just under $2,500 per ounce, while silver dropped over 3%, closing around 28%.
In South Korea, inflation eased to its lowest level in 42 months, rising by just 2% year-over-year. South Korea may not be a major economy, but it is one of the world’s largest exporters, with companies like Samsung leading the charge.
China saw slight improvements in manufacturing activity for August, though the Eurozone’s manufacturing sector contracted sharply, especially in Germany and France.
Job openings in the U.S. fell to a three-and-a-half-year low in July, suggesting a weakening labor market. What’s even more troubling is that while Americans lost 1.3 million jobs, foreign-born workers gained 635,000 jobs, meaning about half of the jobs lost by Americans went to foreign workers.
Corporate News
Volkswagen, the second-largest carmaker in the world, is considering cutting plants in Germany for the first time. They say it’s to “future-proof” the company. Meanwhile, Dollar Tree, one of the go-to low-cost supermarkets, suffered its worst drop on record—down 22% after slashing its full-year outlook. Similarly, Dollar General reported pressure on middle- and high-income customers, with its stock falling 43% over the past three months.
Tech giant NVIDIA plunged nearly 10%, driven by concerns about the U.S. economy. Frontier Communications is being acquired by Verizon for $20 billion in cash as Verizon looks to expand its fiber network. At the same time, major tech firms like Intel, Cisco, IBM, and Apple are cutting over 27,000 jobs, preparing for the looming recession.
Technology and International News
In tech news, Starlink announced it will comply with Brazil’s top court order to block access to social media platform X (formerly Twitter). There was some back-and-forth with one of Brazil’s Supreme Court justices, who many claim is acting like a dictator. Starlink will also offer free emergency mobile calls and has partnered with T-Mobile to provide cell service directly through satellites. Tesla’s stock jumped nearly 5% after announcing plans to offer its full self-driving package in China and Europe, pending regulatory approval.
In Colombia, protests erupted as the government raised fuel prices, previously subsidized for years. This sparked blockades and significant traffic disruptions across the country.
Interesting Facts
A neighborhood in Rancho Palos Verdes, Los Angeles, is now moving at 13 inches per week—far faster than the usual 8 inches per year. Authorities have declared a state of emergency, cutting off electricity to prevent fires.
And finally, the second-largest diamond in history has been uncovered in Botswana. It’s literally the size of your hand!
That’s the news for this week. Let me know if you have any questions. Don’t forget to subscribe, and remember—the preppers were right.
