After S&P futures printed at new all time highs on 8 of the past 9 days, one can almost feel sorry for the euphoric bulls (and meme stock traders) who woke up this morning to headlines such as this:
- *S&P 500 INDEX FUTURES RETREAT 1.5%
- *NASDAQ FUTURES DROP 1.5%
- *STOXX EUROPE 600 INDEX DROPS 1.5% TO SESSION LOW
And sure enough, just one day after it appears that nothing could stop markets from exploding to recorder highs day by day by day, on Thursday morning both the reflation and growth trades were a dumpster fire, with Dow e-minis plunging 475 points, or 1.37%. S&P 500 e-minis were down 58 points, or 1.34% and Nasdaq 100 e-minis were down 190 points, or 1.3%, the VIX jumped above 20 after trading at 14 just a few days earlier and 10Y yields dropped as low as 1.25%. Bitcoin tumbled back down to $32,000.
At the same time, the collapse in yields accelerate, with 10Y yields tumbling as low as 1.25% while 30Y dropped below 1.90% for the first time since February as inflation expectations eased.