US cash equity markets opened with no panic-bid, instead being met with a wall of selling after the ugly overnight futures session.
The selling wave was almost unprecedented, with a TICK below -2000 – the fifth largest ‘sell program’ in history…
As Bloomberg notes, sell programs of this size are typically not single events. They tend to happen in clusters and that probably means stocks might be in store for bigger losses.
This puke sent the S&P 500 to the lows of the year and into bear market territory…
Elsewhere, the picture is just as bloodbath-y with Bitcoin puked back below $24k…
Gold topped $1880 briefly then plunged back below $1840…
The yield curve (2s10s) briefly inverted this morning, as the short-end underperforms (but the entire Treasury market is getting hammered)…
And credit markets are really hemorrhaging with IG credit crashing back to its COVID lockdown spike lows…
The last time credit markets puked like this, The Fed turned up the intervention amplifier to ’11’.
Is that a silver lining? A few ticks lower and Powell throws in the towel – the Fed will not risk a depression… or will he?
The market is starting to capitulate on the hope of an imminent Fed Put for now…
And is pricing in 3 rate-cuts after, to ‘rescue’ us from the imminent shitshow.
