After 356 days without a 2% correction, the S&P500 finally bent the knee after tech giants results. The Nasdaq fate was worse (-3.64%) due to higher concentration on the sector. Over the last 10 days, the magnificent seven have lost an aggregated $2Tn of market cap. Not only tech is suffering: Ford fell 10% after hours after a big earnings miss. As we await for the rest of the companies to present results, today the 2Q GDP and PCE will be published, which combined with a potential continuation of market weakness can provide the additional nudge the Fed needs to lower rates. Japan’s Nikkei fell 4.36% as well, with the Yen strengthening to 152, which could mean there was a huge yen financing trade (SoftBank?) to invest in tech, which is now unwinding.
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