They were speculating on CNBC this morning that the big correction yesterday wasn't just because of increasing coronavirus cases in places like Arizona and Texas, but also because the market believes it's getting more likely that Biden will win the presidency and the Democrats will control the Senate. That would potentially mean higher taxes on corporate income and capital gains, which means lower after tax income and lower valuations.
Originally Posted by Tiny
Although I agree that for the reasons you noted the market might sell off if it were to sniff out an increasing likelihood of a big Democratic victory, I'm not sure that's what was happening yesterday.
Regarding trading in Boeing, quite a bit of buzz popped up earlier in the day (Thursday) over the chaotic situation in Seattle, where a lunatic left-wing mayor seems perfectly OK with the attempted secession going on in the heart of the city. BA stock took a quick 12% dip (although it bounced right back today). There may have been a bit of a contagion effect that dinged the entirety of an already nervous market, and BA's market cap is still north of $100 billion. (Not small potatoes, even in today's world!)
In recent months, Boeing had already attracted the attention of a lot of big traders, given all the speculation centered around differing outlooks for the almost comatose airline industry. And since it has a very large operational footprint near Seattle, and draws quite a bit of its workforce from the immediate area, unrest might have caused traders some sudden concerns.
But perhaps now there's growing optimism that patient U.S. diplomatic efforts might convince politburo members from the People's Republic of Chaz that a peaceful transfer of power is in their best interests.
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