A wave of danger aversion has hit world equities in a seeming bolt of lightning out of the blue.
There isn’t any huge macro catalyst for this transfer, which now has the S&P 500 down 39 factors or 0.75%. Shares opened greater at the moment and all the things seemed to be calm with no financial information scheduled for at the moment.
Then the underside fell out. The transfer even caught the ticker man at CNBC off guard.
One spot that many are pointing to is NVDA, which has undoubtedly pushed the market this yr. Shares are down 4% at the moment after some less-enthusiastic feedback from a UBS analyst. Pinning it on that alone is a stretch as a result of he is been warning on October NVDA revenues for over every week however that is the most effective we have got.
I believe there’s a robust technical factor in place, because the drop in NVDA got here after a break of $850, which held in three earlier makes an attempt. Greg notes some issues to look at on the NVDA chart.
Others are pointing to de-risking forward of tomorrow’s CPI report because the catalyst for this transfer.
In any case, the inventory market transfer is bleeding into FX with the yen strongly bid. USD/JPY has fallen to 151.60 from 151.80 and broader USD bids, regardless of falling Treasury yields.
