Well if you thought the September enthusiasm was going to have the market waltzing into Q4 like it owned the place, think again. Major indices are stumbling harder than me when I thought mixing tequila and karaoke was a good idea at the State Fair this year. 

(Source: MarketWatch) 

In short, growth concerns are back in the spotlight, manufacturing data was “bleh”, and geopolitical drama is forcing everyone to buckle up this wonderful Tuesday. As of now, three of the major U.S. indices are in the red. The Dow is down over 300 points, the S&P 500 is off by 1%, and the Nasdaq is getting absolutely bodied, losing over 1.4%. It’s like the market collectively woke up and said “Oh, it’s October… time to shat the bed guys”. 

(Source: Giphy) 

The culprit, besides a looming U.S. jobs report and some underwhelming manufacturing data, has investors glued to their screens watching the Middle East. Word from the White House is that Iran’s prepping to launch a ballistic missile at Israel. Naturally, this has everyone in a panic—except for oil traders, who are currently living their best life as Crude Oil futures are roaring 3% this AM. 

(Source: Reuters) 

In fact, speaking of panic, the  CBOE Volatility Index (VIX)—Wall Street's favorite fear gauge—spiked above 20. In case you’re keeping score, that’s the highest level since September 11th (no, not that one, the one from last month). Simply put, when the VIX is up, it’s a sign that traders are basically hitting the “wreak havoc” buttons. 

Meanwhile, as energy stocks are laughing all the way to the bank with the S&P 500 energy sector climbing more than 1%, tech stocks are getting smoked. Apple and Tesla both dropped over 2%, and Nvidia, which has been the market’s golden child all year, is also down more than 1%. It’s not all doom and gloom, though. Meta is somehow defying gravity, flirting with all-time highs like it’s not even aware of the carnage around it. 

(Source: Giphy) 

Additionally, small-cap stocks are also feeling the pressure, with the Russell 2000 sliding more than 1%. Apparently, no one is safe today, unless you’re in oil or you’ve somehow managed to short the entire tech sector. And if you did, I need your secret sauce. 

On the other hand, ICYMI, this pullback comes just after the S&P 500 and Dow closed out September with record highs—which is like, no big deal, considering it was a massive win during a month that’s historically been a dumpster fire for stocks. Meaning, if you’re wondering why everyone’s suddenly bummed out, it’s because nothing gold can stay, Ponyboy.

(Source: Quartz) 

But, but, but… the good news here? Yesterday, Fed Chair Jerome Powell basically told everyone to chill and said the economy is in solid shape—but "don’t expect us to go wild with rate cuts." He confirmed that the Fed would probably cut rates two more times this year, with a quarter-point each time. But he also warned, “We’re not in a rush.” Translation: “I know you want more rate cuts, but you’re going to have to wait, you greedy bastards. 

(Source: Giphy) 

Looking onward ahead of this atrocious Tuesday price action, all eyes are now on Friday’s nonfarm payrolls report. It’s the big kahuna that could either calm investors down or send them into a full-blown panic attack. Traders are hoping for signs that the economy is cooling down but not collapsing—kind of like when you tell yourself you’re “cutting back” on caffeine but still crush three Red Bulls before noon.

(Source: FX Empire) 

Oh, and don’t forget about the International Longshoremen’s Association strike on the East and Gulf Coasts. This could slow down half of the U.S.’s ocean shipping and cost the economy billions. So yeah bummer (unless you’re a survival nerd - your 20 year stock pile may come in handy, congrats). 

(Source: Giphy) 

In the end, it’s a mess out there friends. But in the meantime, keep your eyes on oil, Powell, and that jobs report—and maybe consider taking a break from checking your portfolio every five minutes. You’ll thank yourself later.

As always, stay safe and stay frosty, friends! Until next time…

P.S. Whadda beauty! Our alert last week definitely proved itself worthy as $MNPR ripped to a peak of +71% in less than four days! But, but but… that was last week. This week though? Oh baby, our screeners are flashing green on one little known stock... and by the looks of it, we might have another $LFLY on our hands (ICYMI, $LFLY rocketed 142% in less than 25 minutes). Meaning, if you haven't done so yet, I highly suggest upgrading to premium before things get crazy once we drop our newest trade alert! Don't say I didn't warn ya…

Stocks.News holds positions in Apple, Meta, and Tesla as mentioned in the article.