Tech Wreck Meta-stasizes To Broader Market; Credit Starts To Crack

Tech Wreck Meta-stasizes To Broader Market; Credit Starts To Crack

Today was the worst day for a balanced bond/stock portfolio since Feb 2021 as stocks puked and yields spiked as Risk-Parity funds puked as Zuckerberg’s disaster forced deleveraging and derisking everywhere…

While Facebook’s stock was probably up in the metaverse, in the cold, hard reality in which us plebs live, Meta lost almost $250 billion in market cap today, losing its membership of the ‘four commas’ club and falling to the same market cap as Nvidia…

There was a brief retail-driven BTFD episode at the cash open, but the algos disagreed…

That is more market cap lost than the total market cap of 475 members of the S&P 500 and equivalent to an Adobe, a Disney, a Broadcom, two Blackrocks, two Goldmans, three General Motors, or five Bank of New York Mellons.

Source: Bloomberg

This is  – as far as we can tell – the largest single-day market cap loss for a company... ever. And dwarfs the next 5…

AAPL lost $179bn on 09/03/20

MSFT lost $178bn on 03/16/20

TSLA lost $140bn on 11/09/21

AMZN lost $130bn on 07/03/21

GOOGL lost $95bn on 03/16/20

And aside from the day that Jeff Bezos handed over half his wealth to his ex-wife, this has to be the biggest daily net worth loss for a human ever.

All of that amid a total lack of liquidity…

All of which weighed most heavily on Nasdaq obviously but that selling overhang metastasized (see what we did there?) across the broader market (and prompted liquidation selling in other assets). There were barely any bounces and those that did manage anything were hit hard. Selling accelerated at around 1430ET (margin call time).

Worst day for the Nasdaq Since Sept 2020

The S&P and Dow both dropped back below their 100DMAs…

Everything is now red for February (with the late-day purge dragging the Dow down too)…

Credit markets ain’t buying the recent rampage in stocks. HY/IG spreads are at 15-month highs…

Source: Bloomberg

…while VIX decouples lower…

Source: Bloomberg

Treasuries were also dumped today with yields up 4-5bps (but only after spiking even more intraday)…

Source: Bloomberg

The 30Y Yield continues to chop in a relatively wide 10bps range…

Source: Bloomberg

US rate-hike odds rose modestly but Lagarde sent European rate-hike expectations soaring with her surprisingly hawkish sentiment…

Source: Bloomberg

The dollar continued its slide, dumping rather notably today…

Source: Bloomberg

Bitcoin dropped for the 2nd day in a row, unable to hold above $37k…

Source: Bloomberg

Gold was puked at the US equity cash open, back below $1800, but buyers stepped in rapidly and lifted it back above $1800…

Finally, a weak dollar and escalating geopolitical risks sent WTI surging back above $90 today for the first time since Oct 2014…

And that means $3.50 gas at your pump is coming very soon…

Source: Bloomberg

Get back to work Mr.Biden!

Tyler Durden
Thu, 02/03/2022 – 16:01

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