Equity Storm Watch Is RED on the S&P 500 and GREEN on the Russell 2000
In a dramatic day for markets, yesterday's meltdown, which saw the Nasdaq have its worst sessions in nearly two years, rippled through the night. Asian markets picked up where the U.S. left off. The Nikkei led the pack, down by 3.2%, as rumors swirl that ‘Big in Japan' is breaking.
The carry trade unwinds amidst fears of a BOJ rate hike and the potential for further intervention by finance ministers.
The NASDAQ has fueled this sell-off, with mega-cap and large-cap stocks tumbling. The AI trade is currently cracking, with companies like Super Micro Computer (SCMI) down 30% in about a month. NVIDIA (NVDA) is down 10% in a month. However, yesterday's rotation to small caps wasn’t as strong as hoped.
The S&P 500 is turning negative… and technology stocks as a sector are negative. That is where we start to worry about even more aggressive selloffs… Capital is flowing out of the S&P 500 very quickly right now. Outflows we…
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