The S&P 500 fell 4.4% today, its biggest one-day decline since April 4, 2025 (during the tariff-induced bear market). While painful, days like today are the primary reason why you earn a higher return from equities than bonds/cash in the long run. This is the price of admission.
What just happened?
The Nasdaq 100 just posted its largest daily drop since the 2020 Pandemic, with the S&P 500 erasing -$3 trillion today.
Just 24 hours ago, the Dow surged +1,600 points after the Democrats "swept" the Midterms.
So, what changed? Let us explain.
(a thread)
BREAKING: The Volatility Index, $VIX, surges over +70% on the day, on track for its biggest daily gain since February 2018.
Not even March 2020 saw a daily jump in volatility like we are seeing now.
BREAKING: The Nasdaq 100 extends losses to -5.5% on the day, now on track to post its biggest daily decline since April 2025.
The index is now ~5% away from entering bear market territory.
BREAKING: The S&P 500 has now erased -$2.2 trillion over the last 55 minutes.
Today's decline is now double the size of yesterday's post-election rally.
The Nasdaq 100 is ~6% away from a bear market.