Easy come, easy go.
Just as the S&P and NASDAQ recorded new all-time highs, stocks appear poised to give back some of those gains as the opening bell approaches Wednesday morning. Stock futures are falling fast as the sun rises over lower Manhattan.
With less than an hour before the opening bell rings, Dow futures are down 450 points, NASDAQ futures have shed 260, and S&P futures are off by 37 points. The accused culprits are Houthis blowing up much of Saudi Arabia's oil production, Iran blasting tankers in the Strait of Hormuz, the potential for Hurricane Isaias to damage oil rigs and refineries in and around the Gulf of America, and interest rates hitting 20+ year highs.
The Shiller PE closed Tuesday at 41.90, not the highest ever, but close.
As usual, with stocks being battered, gold and silver are being beaten down. At this time, with China's markets closed until Thursday for Golden Week, spot gold is being quoted at $4088, and silver at around $58 per ounce, both three-month lows.
Most of the downside damage occurred just after 8:00 am ET, for no apparent reason.
None of this looks particularly pleasing to the Republicans in congress nor for those expecting a windfall $5000 check from President Trump when his party wins the midterms. Those checks should be arriving about the same time as the DOGE payouts and the tariff dividends.
Risk on! Party off!
At the Close, Tuesday, October 6, 2026:
Dow: 51,521.28, +253.38 (+0.49%)
NASDAQ: 27,599.89, +122.58 (+0.45%)
S&P 500: 7,818.93, +44.98 (+0.58%)
NYSE Composite: 23,921.67, +133.06 (+0.56%)
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