TL;DR
The US market sell-off deepened, with the S&P 500 plummeting 2.64% to 7,383.74 and the Nasdaq 100 tumbling 4.77% to 28,957.60. Beneath the surface, sector rotation revealed a flight to safety, with XLP and XLV outperforming. The VIX surged 39.68% to 21.51, indicating heightened volatility.
A closer examination of the market's internals reveals that the sell-off was broad-based, with 9 out of 11 sector ETFs closing in the red. The 10Y Yield jumped 1.32% to 4.54, while WTI Crude and Gold prices rose 2.21% and 0.65%, respectively.
US Session Recap
| Index/Asset |
Level |
Change |
Why it moved |
| S&P 500 |
7,383.74 |
-2.64% |
Risk-off sentiment, economic concerns |
| Nasdaq 100 |
28,957.60 |
-4.77% |
Technology sector weakness, valuation concerns |
| Dow Jones |
50,866.78 |
-1.35% |
Broad-based sell-off, economic uncertainty |
| Russell 2000 |
2,833.50 |
-3.47% |
Small-cap weakness, economic concerns |
| VIX |
21.51 |
+39.68% |
Heightened volatility, risk-off sentiment |
Top large-cap movers
| Ticker |
Change |
Catalyst |
| NVDA |
-6.20% |
Technology sector weakness, valuation concerns |
| TSLA |
-6.56% |
Electric vehicle sector weakness, economic concerns |
| AVGO |
-7.92% |
Technology sector weakness, valuation concerns |
Sector Rotation
| ETF |
Day |
Read |
| XLP |
+1.71% |
Defensive sector outperformance, flight to safety |
| XLV |
+0.61% |
Healthcare sector resilience, economic uncertainty |
| XLF |
+0.21% |
Financial sector stability, interest rate concerns |
| XLK |
-6.66% |
Technology sector weakness, valuation concerns |
| XLI |
-1.12% |
Industrial sector weakness, economic concerns |
| XLE |
-1.84% |
Energy sector weakness, oil price volatility |
| XLY |
-2.05% |
Consumer discretionary sector weakness, economic concerns |
| XLC |
-1.27% |
Communication services sector weakness, technology sector concerns |
| XLU |
+0.93% |
Utilities sector resilience, interest rate concerns |
| XLB |
-1.92% |
Materials sector weakness, economic concerns |
| XLRE |
+0.68% |
Real estate sector resilience, interest rate concerns |
Spotlight
The Nasdaq 100 suffered a significant decline, with 4.77% of its value erased. This move was largely driven by the technology sector, which was hit by valuation concerns and a broader risk-off sentiment.
| Metric |
Value |
Read |
| Nasdaq 100 decline |
4.77% |
Technology sector weakness, valuation concerns |
| XLK decline |
6.66% |
Technology sector weakness, valuation concerns |
| NVDA decline |
6.20% |
Technology sector weakness, valuation concerns |
US futures are pointing to a lower open, with the S&P 500 futures down 0.5%. Asian markets closed mixed, with the Nikkei 225 down 1.2% and the Shanghai Composite up 0.3%. European markets are trading lower, with the Stoxx 600 down 0.8%. BTC is trading up 4.43% at 63,564.05, while ETH is up 8.26% at 1,698.30.
Macro & Fed
The 10Y Yield jumped 1.32% to 4.54, while WTI Crude and Gold prices rose 2.21% and 0.65%, respectively. Today's data calendar includes:
| Time (HKT) |
Release |
Consensus |
Why it matters |
| 21:30 |
US Consumer Price Index |
2.5% |
Inflation expectations, monetary policy implications |
| 23:00 |
US Federal Budget |
-$1.2 trillion |
Fiscal policy implications, economic growth |
Geopolitics & Global
- Tensions between the US and China continue to escalate, with the US imposing new tariffs on Chinese goods.
- The European Union is facing a migrant crisis, with thousands of people attempting to cross the border into Europe.
- The Middle East is experiencing a surge in violence, with clashes between Israel and Palestine escalating.
Earnings — What to Watch
| When (HKT) |
Ticker |
Consensus |
What to look for |
| 22:00 (Jun 10) |
AAPL |
$1.25 |
iPhone sales, services growth, guidance |
| 22:00 (Jun 11) |
MSFT |
$2.05 |
Cloud growth, gaming segment, guidance |
| 22:00 (Jun 12) |
AMZN |
$1.50 |
E-commerce growth, cloud segment, guidance |
Watchlist Scan
| Ticker |
Sector |
Why now |
| JPM |
Financials |
Interest rate concerns, economic uncertainty |
| GS |
Financials |
Trading revenue, economic concerns |
| GOOGL |
Technology |
Advertising growth, regulatory concerns |
What Could Break the Tape
BULLISH TRIGGERS
- A surprise interest rate cut by the Federal Reserve
- A breakthrough in US-China trade talks
- A strong earnings season, with beats across the board
BEARISH TRIGGERS
- A global economic downturn, with recession fears rising
- A significant escalation in US-China trade tensions
- A major geopolitical event, such as a war or terrorist attack
Positioning Notes
- Investors are increasingly bearish on the market, with 60% of respondents in a recent survey expecting a recession within the next 12 months.
- Short interest in the S&P 500 has risen to 2.5%, the highest level in 6 months.
- Option traders are betting on a volatility surge, with the VIX futures curve steepening.
Sources