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The Dow Jones Industrial Average fell as much as 120 points in Tuesday's pre-market trading as markets struggled to identify new catalysts to rally major indexes. The Dow has yet to lock in any significant gains this month, falling over 180 points since Sept. 1.
According to hedge fund manager Ray Dalio, we are in the seventh inning of our existing economic cycle, and investors should be more defensive given the downside risks to stocks right now. And he's not the only one…
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
Now here's a closer look at today's Money Morning insight, the most important market events, and stocks to watch.
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The Top Stock Market Stories for Tuesday
- Global markets are under pressure this morning as investors continued to worry about the ongoing trade war between the United States and China. The Hong Kong stock market fell into bear territory this morning as more and more investors from China are unable to push additional capital into their investments. Investing abroad has grown more expensive as the Chinese yuan continues to depreciate against the Hong Kong dollar, which is pegged to the U.S. dollar. The Hang Seng index is 20% lower than its January 2018 peak.
- U.S. investors will be keeping a close eye on Hurricane Florence, which is breaking down on the East Coast. The hurricane is expected to be one of the worst to make landfall in the Carolina region in more than 60 years. The last Category 4 storm to hit North Carolina was Hurricane Hazel in 1954.
- The CME Group's FedWatch tool for a September rate hike says that the odds are sitting at a 99.8% probability. That makes headwinds for the price of gold. But Money Morning Resource Specialist Peter Krauth predicts that a breakout is coming for the yellow metal. Here's what you need to know about gold prices to start your Tuesday morning.
Money Morning Insight of the Day
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.