{"id":16410,"date":"2026-06-05T21:24:00","date_gmt":"2026-06-05T21:24:00","guid":{"rendered":"https:\/\/tomfarandasfolly.com\/?p=16410"},"modified":"2026-06-05T21:24:00","modified_gmt":"2026-06-05T21:24:00","slug":"why-the-stock-market-had-a-mini-melt-down-today","status":"publish","type":"post","link":"https:\/\/tomfarandasfolly.com\/?p=16410","title":{"rendered":"Why the stock market had a mini-melt down today"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Two reasons &#8211; <\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"225\" height=\"225\" src=\"https:\/\/tomfarandasfolly.com\/wp-content\/uploads\/2026\/06\/money-symbol-1.jpg\" alt=\"\" class=\"wp-image-16414\" style=\"width:147px;height:auto\" srcset=\"https:\/\/tomfarandasfolly.com\/wp-content\/uploads\/2026\/06\/money-symbol-1.jpg 225w, https:\/\/tomfarandasfolly.com\/wp-content\/uploads\/2026\/06\/money-symbol-1-150x150.jpg 150w\" sizes=\"auto, (max-width: 225px) 100vw, 225px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">First Wednesday evening Broadcom (symbol AVGO) which has had great performance for 18 months issued their quarterly report regarding earnings, revenue, etc. Excellent numbers but they did not outperform the &#8220;whisper numbers&#8221; and since these stocks are priced for perfection it dropped 13% Thursday and another 8% today. However the stock is still up 48% for one year. Anyway this spooked the other semiconductor stocks &#8211; for example Nvidia down 6%, AMD down almost 11%. Of course AMD is up over double year to date (108%) so when people get any little glitch it&#8217;s an excuse to take profits. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Second, the job creation numbers, expected at 85,000 came in at double that &#8211; 172,000. So good news BUT makes it very unlikely that there will be any interest rate lowering by the Fed this year. It even raises the possibility of a rate hike later this year to put a clamp on inflation. Stocks love interest rate drops and hate rate hikes.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"195\" height=\"130\" src=\"https:\/\/tomfarandasfolly.com\/wp-content\/uploads\/2026\/06\/money-dollar-bag.jpg\" alt=\"\" class=\"wp-image-16418\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Overall the S &amp; P 500 was down 2.5% and the NASDAQ 4.2%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So a correction or sorts, and after the run-up of the last few months no need for panic. Here&#8217;s the answer &#8211;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/tomfarandasfolly.com\/?p=16398\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Friday cocktail \u2013 the Metropolitan<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two reasons &#8211; First Wednesday evening Broadcom (symbol AVGO) which has had great performance for 18 months issued their quarterly report regarding earnings, revenue, etc. Excellent numbers but they did not outperform the &#8220;whisper numbers&#8221; and since these stocks are priced for perfection it dropped 13% Thursday and another 8% today. However the stock is [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-16410","post","type-post","status-publish","format-standard","hentry","category-investing-and-business"],"_links":{"self":[{"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=\/wp\/v2\/posts\/16410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16410"}],"version-history":[{"count":4,"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=\/wp\/v2\/posts\/16410\/revisions"}],"predecessor-version":[{"id":16450,"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=\/wp\/v2\/posts\/16410\/revisions\/16450"}],"wp:attachment":[{"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tomfarandasfolly.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}