It was a short trading week in the U.S. due to the Thanksgiving holiday. U.S. markets were closed on Thursday, and opened for a shortened day on Friday as retailers geared up for a hoped-for rush of shoppers to kick off the holiday shopping season.
Devastating wildfires in California were the latest disaster to strike the United States. The raging fires followed almost directly on the heels of two major hurricanes that had devastating impacts on Florida as well as much of the eastern seaboard. The scale of the economic impact due to the damage of this year’s natural disasters won’t be known for months, if not years. In the markets, volatility remained elevated amid indications of slowing global growth.
Mid-term elections in the U.S. were the big news of the week and the results will likely mean that governmental gridlock in Washington, D.C. will return in full. Republicans maintained control of the Senate, but the Democrats have taken the majority in the House of Representatives.
Trade and tariff impacts combined with ongoing tensions in the Middle East to continue rattling markets this week. Technology stocks in particular struggled as earnings season begins to wind down. Several big tech names, like Apple, and Alphabet (formerly Google) either missed on their earnings expectations or announced things during their conference calls that spooked investors.
As Ludwig von Mises correctly stated, in a free state, no one is forced to remain within the state. Anyone who seeks to emigrate is free to do so. This is, in fact, one of the primary tenets of liberty – if you don’t like it, you can leave.
And so, it follows that, if the right to exit is curtailed in any way, the state has ceased to be free.
Stocks remained volatile this week, continuing their selloff from last week and moving further into correction territory. As earnings season continues on, more and more companies are commenting during their earnings conference calls that the ongoing tit-for-tat tariffs between the U.S. and China are finally beginning to cut into their profit margins.
Stocks continued to sell off this week as the trade dispute between China and the U.S. remains unresolved. Rapidly rising interest rates in the U.S., due to the Federal Reserve steadfastly continuing along its path of interest rate hikes, is also a concern since analysts are beginning to suspect that the Fed could very well overshoot its inflation target and lose control just as it did during the 1970s.
Stocks sold off this week as rhetoric between President Trump and the Federal Reserve ramped up. Technology sectors appeared to be hardest hit in the selloff. The Nasdaq dipped into correction territory this week, the first among major stock indexes to do so.
The release of the Non-Farm Payrolls report for September was eagerly awaited this week after the Federal Reserve’s latest rate hike last week. Italy’s continued budgetary problems triggered multiple rounds of uncertainty for markets this week in addition to the ongoing global trade frictions.
The Federal Reserve’s interest rate decision and continued trade frictions between the U.S. and China were mostly sidelined in the news by the theatrics surrounding the hearings for Brent Kavanaugh’s Supreme Court nomination.