Wall Street: stress and heavy trend reversal
The Dow Jones fell from +0.5% to -1.35%, at 38,597, the S&P500 from +0.75% (within 0.15% of its highs) to -1.23%, at 5,147, and the Nasdaq Composite from +1.1% to -1.4%, at 16,049.
The "tech" index experienced one of its biggest intraday swings of the year, and not "in a good way", following supported sell-offs on AMD -8.3%, KLA -3.6%, Nvidia and Broadcom -3.4%, Micron -3.1%, Marvell -2.9%, Alphabet -2.8%, Qualcomm -2.4%....
Reminder: Wall Street had gained +16% in nine weeks at the end of 2023 on expectations of seven to eight easings of the cost of money in 2024.
As a sign of the stress that shook Wall Street, the VIX, which in the morning was in the "complacent" zone at around 13.75, jumped +15% to 16.5, the biggest movement since February 13 and above all the most negative since October 13, 2023 (16.7/19.3).
Investors also took note of a series of statistics on Thursday: the US trade deficit stood at $68.9 billion in February, up 1.9% on the previous month.
The Labor Department announced 221,000 new jobless claims in the US for last week, a figure up 9,000 on the previous week's revised figure (212,000 instead of 210,000).
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