Pre-Markets Continue to be Deeply in the Negative

Pre-markets continue to boil down this morning, after closing at session lows on Friday for the worst week of trading since March of 2020. Forty-five minutes before the bell rings in a new trading week, the Dow is down an additional -900 points, the S&P 500 -125 points and the Nasdaq -425.The American indexes are now reverberating off the market reactions around the world, with the Eurozone FTSE -4% heading into its Monday close, Germany and France -5%, Saudi Arabia -6% (on oil prices at $60 per barrel; these were in the high $70s a week before Trump’s inauguration), the Japanese Nikkei and Chinese Shanghai markets -7%, and the Hang Seng in Hong Kong -13%.Thus far, the equities markets have shed -$9.6 trillion in value. More than half of the American public owns stock, including a clear majority of the middle class, via 401k’s and other investment accounts. The harsh tariff policies begun last Wednesday from the White House lawn are proving a very tough pill to swallow, and economists now look toward the chain-reaction: companies going broke, laying off workforces, and otherwise pointing trajectories toward recessionary conditions.Over the weekend, administration reps like Treasury Secretary Scott Bessent and senior advisor Peter Navarro attempted to spin these developments as advantageous over the long term for the U.S. economy. The ongoing wealth destruction — including the aforementioned lower oil prices and a weakening U.S. dollar — is amounting to a re-set of economic balance which will offer lower bank rates over time, lower fiscal deficits and higher GDP. Just how current methods are set to accomplish these things is proving much murkier, however, although the last stanza always rhymes with “massive tax cut.”Take lower rates, for instance. While it’s true the 10-year bond yield has currently shrunk down to +4.01%, this is still notably above where we were back in September of last year. The Volatility Index (VIX) is up +200% over the past year, mostly due to this recent tariff shock to the markets. The Fed is a data-driven agency that is not going to lower interest rates just because it might make it easier for President Trump to cut taxes.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks