Nasdaq Down 5%, DOW and S&P Down Over 3%: Just a Start

The FANGs led the Nasdaq on the way up and lead again on the way down. Technology shares were hammered close to 5%.

The Wall Street Journal reports Quickening Retreat From Tech Sinks Market.

> U.S. stocks suffered their biggest decline in more than seven months Wednesday, as investors accelerated their retreat from fast-growing technology stocks in favor of shares that have been overlooked.

> Major indexes have started the fourth quarter on their weakest footing since the beginning of 2016, and the swift fall has some investors wondering if this is a brief stumble or an overdue reckoning for U.S. stocks after months of outperforming global markets.

> The rotation out of tech and other growth stocks—among the most popular trades of the year—to so-called safety stocks, such as utilities companies, was sparked in part by the recent jump in government bond yields and the Federal Reserve’s bid to tighten monetary policy.

> But there have been other warnings signals that made investors nervous. Recent data has showed a slowdown in both housing and auto sales, both of which are closely watched indicators of U.S. economic health. Even more concerning: trade tensions between the U.S. and China appear to be worsening.

> The result: A simultaneous selling of 2018’s biggest stock-market winners.

Moving Averages

Leaders Up, Leaders Down

Feed Me

Big Names

Unsustainable US Share

It Never Fails

There's that cash on the sidelines stupidity once again.

Mike "Mish" Shedlock

Comments (19)
No. 1-15
Corto
Corto

No rotation into gold or bonds... yet....

Casual_Observer
Casual_Observer

And so it begins.

lol
lol

central banks will never allow stocks to fall (ever),if they have to print a trillion dollars a day and buy every single share of every publicly traded company to keep this scheme from collapsing they'll do it (until they can't)!

abend237-04
abend237-04

Ha! Would that 'cash on the sidelines' be coming from those households refusing to run into the smoky building BEFORE the flames broke out or just those sitting inside on the $650 Billion of margin debt?

caradoc-again
caradoc-again

Wonder where it will all settle down to if there were no interventions.