US fairness shut: Unhealthy, however not as dangerous because it may have been

There was some heavy promoting after the open that accelerated till a backside at 12:30 pm ET. The Nasdaq got here perilously near a 7% decline however there was a bounce there and Trump’s feedback that hinted at presumably eradicating 10% tariffs a minimum of on some nations led to some modest additional shopping for.

Closing modifications:

• S&P 500 -Three.5%
• Nasdaq Comp -Four.Three%
• DJIA -2.5%
• Russell 2000 -5.2%
• Toronto TSX Comp -Three.Four%
• Mexican Bolsa -2.eight%

What scares me in regards to the broader worth motion was that even on the peak of the intraday promoting, we had US long-date yields transferring increased and the US greenback slumping. I do not assume I’ve ever seen a 6% Nasdaq decline and a 1% rise within the Australian greenback on the identical day. That form of breakdown in correlations in unsettling.

This text was written by Adam Button at www.ubaidahsan.com.



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