WHY are markets crashing? Our logical explanation:
There is quite literally only ONE headline that can even be partially blamed for such a sudden market crash.
At 11:20 AM ET, the US Labor Department said the November and October employment "situation" will be released on December 16th.
By this point, the S&P 500 was already down -70 points from its high seen at 10:30 AM ET.
However, in the 40 minutes after this announcement, the S&P 500 crashed another -120 points.
We now know that the Fed is effectively entering another interest rate decision with an economic data blackout.
Markets do NOT like information asymmetry.
But, is this really enough to erase nearly -$2 trillion in market cap in a matter of minutes? In our view, this was just the "switch" that shifted sentiment. The reality is that investors are on edge in this market.
When a sudden decline begins, investors rush to the exit because the "bubble is popping." This works in the opposite direction as well.
When stocks surge, the rally accelerates quickly as capital rotates back into AI stocks, because "AI is the next big thing."
The reality is that we now live in a market where ANY headline can drive trillions of dollars of market cap in a matter of minutes for one sole reason:
Sentiment is more polarized than ever.
What is happening?
The S&P 500 is up +40% in 6 months, Gold is nearing $4,000/oz, and Bitcoin hit a record $2.5 TRILLION market cap.
Meanwhile, the US Dollar is set for its WORST year since 1973.
Are markets THAT strong or is the US Dollar just crashing?
(a thread)
Semiconductor Manufacturing International Corp.
in the HKEX exchange, its engaging in the production and sale of semiconductor products. Its headquarter in Shanghai China .
#981
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