Retracement in S&P 500
Yesterday's market nosedive has everyone talking. The S&P 500 dropped 2.3% and the NASDAQ plummeted 3.65%. These aren't just your average fluctuations – we might be looking at the possibly of the start of a serious crash.
The so-called "Magnificent Seven" (Apple, Tesla, Nvidia, Google, Amazon, Meta, and Microsoft) took an average hit of 4.6% in a single day. Given that these seven stocks make up 30% of the S&P 500, their performance can really shake things up.
So, what's behind this market tantrum? Let's look at a couple of key players:
- Alphabet (Google): Beat earnings expectations, but ad revenue growth slowed to 11%.
- Tesla: Revenue and earnings lower than expected, EV profits dropped due to price cuts.
The VIX, often called the "fear index," shot up 50% in one day – a big red flag. We might see the S&P 500 drop to around 5,000 points and the NASDAQ could be in for a 10-30% retracement.
So, buckle up, fellow investors. It might be bumpy, but those who weather the storm often come out stronger. Of course this is not financial advice!
Posted Using InLeo Alpha
I'm buckled up and looking forward to the exciting descent :)
I think we are in for a storm but I still don't think we will see a hard crash until after the US elections.
You were right 10 days ago. The stock market decline intensified.