That was quite a day. The tech wreck continued, leading the drop in stocks. Commodities did the unthinkable and tumbled on the day but Gold and Cryptos gained as the dollar dumped into the red for the year.
Dallas Fed’s Kaplan warned that he was “cognizant of excess risk-taking in financial markets”. Maybe turn the taps off then?
The Dow topped 35k for the first time ever but was unable to hold gains and ended its win streak at 5 days. The US cash open sparked panic-selling in Small Caps and Big-Tech and they never really looked back. All major indices were hit to the downside around 1415ET (ahead of margin call time). Stocks closed ugly at the lows of the day.
The Dow’s recent dramatic outperformance pushed it above the March highs relative to Nasdaq.