US Markets Plunge as Risk Aversion Spikes
A 5-minute read of yesterday's US session and today's catalysts — what to watch before pre-market opens at 21:30 HKT.
TL;DR
The US market experienced a significant downturn, with the S&P 500 plummeting -2.64% to 7,383.74 and the Nasdaq 100 dropping -4.77% to 28,957.60. The VIX surged +39.68% to 21.51, indicating increased market volatility.
Tech stocks were among the hardest hit, with NVDA and TSLA falling -6.20% and -6.56%, respectively. The 10Y Yield rose +1.32% to 4.54, while WTI Crude dropped -2.69% to 90.54.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,383.74 | -2.64% | |
| Nasdaq 100 | 28,957.60 | -4.77% | |
| Dow Jones | 50,866.78 | -1.35% | |
| Russell 2000 | 2,833.50 | -3.47% | |
| VIX | 21.51 | +39.68% | |
| 10Y Yield | 4.54 | +1.32% | |
| WTI Crude | 90.54 | -2.69% |
Top large-cap movers
NVDA and TSLA were among the biggest losers, falling -6.20% and -6.56%, respectively. On the other hand, JPM rose +0.48% to 312.37.
Spotlight
| Key Metrics | Value |
|---|---|
| S&P 500 Close | 7,383.74 |
| VIX Close | 21.51 |
| 10Y Yield Close | 4.54 |
The spotlight is on the S&P 500, which closed at 7,383.74 after a -2.64% decline. The VIX surged +39.68% to 21.51, indicating increased market volatility. The 10Y Yield rose +1.32% to 4.54, adding to the market's concerns.
Macro & Fed
- Current policy rate: 4.50%-4.75%
- 10Y Yield: 4.54
- Today's data releases:
- 08:30 HKT: Non-Farm Employment Change
- 10:00 HKT: ISM Non-Manufacturing PMI
Geopolitics & Global
- Tensions between the US and China continue to escalate, with trade talks stalled.
- The European Central Bank is expected to raise interest rates in its upcoming meeting.
- The Japanese government announced a new stimulus package to boost economic growth.
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| 14:00 HKT | AAPL | Q2 earnings and revenue growth |
| 16:00 HKT | GOOGL | Q2 earnings and advertising revenue |
Stocks Worth Watching
- NVDA: after a -6.20% decline, the stock may be due for a bounce.
- TSLA: the electric vehicle maker's stock fell -6.56% and may be worth watching for a potential rebound.
- JPM: the bank's stock rose +0.48% and may continue to outperform.
- AAPL: the tech giant is set to report Q2 earnings and may experience increased volatility.
- GOOGL: the search engine giant's stock may be affected by its Q2 earnings report.
What Could Break the Tape
A further decline in the S&P 500 could lead to a market downturn, with the 7,300 level acting as a key support.
A breakout above the 7,500 level could lead to a market rally, with the Nasdaq 100 potentially reaching 30,000.