Here are today’s market moves:
S&P 500 down 0.48% to 3,811.15
Dow Jones down 1.50% to 30,932.37
Nasdaq up 0.56% to 13,192.35
Gold: $1,732
Bitcoin: $47,738
US10Y: 1.419%
What Happened?
They jammed stocks to the moon by over flooding everything w/ liquidity causing inflation expectations to rise more rapidly than they expected which is now pressuring markets & a sell off of size could hurt the economy.
So now they need to intervene again.
Genius.
Another significant Coinbase outflows at 48k. US institutional investors are still buying $BTC.
I think the major reason for this drop is the jittering macro environment like the 10-year Treasury note, not whale deposits, miner selling, and lack of institutional demand.
Ki Young Ju 주기영 @ki_young_ju
Meltdown in risk assets continues due to bond mkt rout w/Japan's Nikkei plunged 4%. US & European Futures point to lower open. US 10y briefly trading >1.6% on Thur was the initial trigger following a weak US 7y auction. Rout eases a bit w/US 10y 1.48%. Gold 1757, #Bitcoin $44.8k.
the loudest sounds on earth:
~ concert speakers
~ fireworks
~ gunfire
~ blue whale
~ space shuttle
~ crypto twitter
Dear Investor,
Bad days happen and they feel like the end of the world. But 3-5 years later, you barely remember them, and laugh at why they were a big deal.
Market corrections are like that too. Today’s big event is usually small in the long term. Zoom out.
Cheers,
Zindagi
The market selloff the past few days has not been fun but I'm not worried. Inflation fears are exaggerated. Rising rate fears are exaggerated.
I'm extremely bullish on stocks because we have an ideal setup for the next couple years which includes low rates and a booming economy.
Why are treasury yields important? In a nutshell, when yields rise, a company's cost of capital goes up. This increases discount rates in analyst models, which hits valuations.
This Week
Monday: Earnings expected from Palo Alto Networks.
Tuesday: Earnings expected from Home Depot and Square; Jerome Powell to testify before the Senate Banking Committee.
Wednesday: Earnings expected from Lowe's and Nvidia; Jerome Powell to testify before the House Financial Services Committee.
Thursday: Earnings expected from Airbnb, AMC, Best Buy, Beyond Meat, Domino's, DoorDash, HP, Salesforce, and Wayfair; Weekly jobless claims.
Friday: Earnings expected from Foot Locker.