There is an old saying: be careful what you root for - you just might get it. In this case, investors wanted bad news, as it might get the Federal Reserve to back off from blowing up an economy that is already on the back foot.
Now that the news is going from bad to worse, and the declines are gaining momentum, there is a sense maybe bad news is bad news.
All the economic data came up short, including Manufacturing Output -1.3% consensus -0.2%.
Then, there is also the news of Microsoft (MSFT) laying off 10,000 workers and taking a $1.2 billion charge instead of keeping them on the books.
As the earning season ramps, up we might see the record broken for companies mentioning recession, which is already at levels associated with past recessions.
This is fine as long as the Fed hears the message as well. If the FOMC pushes the envelope too much, or is reluctant to pause, it could spell major trouble.
These are smart people, right?
Thoughts go out to the Fed Chair who has contracted Covid-19 - we hear his symptoms are mild.
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