


So much for the "broadening out of the rally" bullshit!
Semis were slammed - their biggest drop since the COVID lockdowns - as the market had trouble with weaker than expected 3Q guidance from European semi bellwether, ASML (and headline chatter of further crackdowns on chip exports to China)
Source: Bloomberg
The Nasdaq damn broke today as it suffered its biggest single-day drop since Dec 2022...
Source: Bloomberg
Small Caps actually had a down day today (though outperformed Nasdaq) as The Dow hit a new record high...
The last five days have seen Small Caps (Russell 2000) outperform Large Caps (Russell 1000) by the largest amount in history (going back to 1979)...
Source: Bloomberg
The Magnificent 7 stocks have lost a staggering $1.1 Trillion in market cap in the last five days...
Source: Bloomberg
But that's still a drop in ocean in context of how far they have come...
Source: Bloomberg
Under the hood, Goldman's trading desk noted that volumes +17% vs the trailing 20 days and can feel it flow-wise on the desk. S&P top of book tracking much higher as well +11%. Our floor is skewed much better for sale (-8%) with most moving their feet in TMT. Across Semis, we have seen significant supply most concentrated in AI winners. We have also seen supply across rideshare names (UBER, LYFT) + ADRs.
For context, in cumulative notional terms, the de-grossing activity over the past 5 sessions is the largest since Nov '22 and ranks in the 99th percentile on a 5-year lookback...
Dovish comments from Fed's Waller were largely ignored - though did provide some juice for the initial short squeeze on Small Caps at the cash open...
Source: Bloomberg
Treasuries were mixed today with the long-end very modestly outperforming overall (2Y +1bps, 30Y -1bps). Weakness overnight gave way to a strong bid during the US session as equities sold off...
Source: Bloomberg
Rate-cut expectations remained dovish with 2025 expectations rising today...
Source: Bloomberg
The dollar tumbled further below June Payrolls lows today, back near two-month lows...
Source: Bloomberg
Much of the dollar weakness was the further implosion of the yen carry trade (which strengthens the yen vs the dollar)...
Source: Bloomberg
Crude prices soared today, helped by a big inventory decline...
Source: Bloomberg
Bitcoin ETFs continued to see stronger inflows...
Source: Bloomberg
But bitcoin was weighed down modestly today by the overall tech turbulence (notably strong relative performance though)...
Source: Bloomberg
Gold dipped back from record highs but spot found support at $2450...
Source: Bloomberg
Finally, if you thought you had a bad day in the markets, President Biden's odds of getting the nomination collapsed... again...
Source: Bloomberg
Kamala's awful quiet, eh?