📈 Wipeout

Global stocks fall as recession fears grow, Judge rules Google is an illegal monopoly, Wall Sreet 'fear gauge' logs record jump, Japanese stocks soar as wider markets bounce from brutal selloff, and JPMorgan trading desk says ‘getting close’ to buy-the-dip opportunity …

Author

Smart Owl
August 06, 2024

Good morning.

The Fast Five → Global stocks fall as recession fears grow, Judge rules Google is an illegal monopoly, Wall Sreet 'fear gauge' logs record jump, Asia stocks rebound after day of wild selling worldwide, and JPMorgan trading desk says ‘getting close’ to buy-the-dip opportunity …

Calendar: (all times ET) - Full calendar

  • Today: US trade deficit, 8:30 AM

  • Tomorrow: Consumer credit, 3:00 PM

Your 5-minute briefing for Tuesday, August 6:

BEFORE THE OPEN

As of market close 8/5/2024.

PRE-MARKET

MARKETS

  • US stocks plunged yesterday on mounting recession fears

    • Nasdaq posted its worst three-week stretch in two years

    • S&P and Dow posted their worst day since September 2022

    • All three major indexes logged their worst three-day losses since June 2022

    • Russell 2000 logged its first hat-trick of 3% drops since 1987

    • VIX jumped by the most ever to hit its highest since Covid

    • S&P 500 volatility spiked higher than Nasdaq 100's in a first since Covid

  • Japan's Nikkei 225 posted its worst drop in thirty-seven years

  • Europe Stoxx 600 dropped 2.2% to a six-month low for its steepest three-day decline since June 2022

  • MSCI emerging-market index fell 4.2%, the most since February 2022

  • US 2Y-10Y yield curve briefly uninverted

  • US swap spreads tightened as investors hedged against lower rates

  • US dollar sunk to its weakest since January

  • Swiss franc hit its highest vs euro since 2015

  • Traders see an 86% chance of a 50 bps Fed rate cut in September and 88% chance of a second ECB cut

EARNINGS

  • Palantir jumped 13% on a Q2 beat-and-raise thanks to unrelenting demand for AI software (link)

  • What we're watching this week:

    • Today: Uber, Airbnb, Reddit, Amgen

    • Wednesday: Walt Disney, Shopify, Robinhood, CVS

    • Thursday: Eli Lilly

  • Full calendar here

NEWS BRIEFING

Judgment delivers a victory to the DOJ as it takes on a string of federal antitrust lawsuits against Big Tech.

  • $1 trillion wipeout - market rout punishes megacap tech (link)

  • Investors are unwinding the biggest ‘carry trade’ the world has ever seen (link)

  • Wall St 'fear gauge' logs record jump as investors bet on more turbulence (link)

  • JPMorgan trading desk says ‘getting close’ to buy-the-dip opportunity (link)

  • Traders bet on Fed emergency rate cuts, but officials need more to react (link)

  • Asia stocks rebound after a day of wild selling worldwide (link)

  • YouTuber files class action suit over OpenAI’s scrape of creators’ transcripts (link)

  • Boeing, Spirit AeroSystems execs to testify at NTSB hearing on MAX 9 emergency (link)

  • US judge describes how Google built and defended illegal search monopoly (link)

  • Elon Musk revives lawsuit against OpenAI and Sam Altman (link)

CRYPTO

  • The crypto market crashed, wiping out $367 billion in 24 hours, with Bitcoin plunging 15% and Ether falling 22%. Most coins recovered this morning (link)

  • Function X launched an AI Innovation Fund with 10 million $FX tokens for blockchain AI projects (link)

  • US lawmakers introduced legislation to expand Secret Service authority in combating crypto crimes (link)

  • DeFi platform Aave generated $6 million in revenue overnight from liquidations during market turmoil (link)

You Can Sponsor this Newsletter details here.​

DAILY SHARES

Keep the curation going! Buy the team a coffee ☕️