The Nasdaq is now down almost 400 points on the day, or 4%. The chart isn’t a pretty one with the recent bounce evaporating and falling into a wide space with little support.
The crispness on the message from Powell really caught the market off guard.
I’d also say that virtually everyone (or at least the loudest ones) thought the July-August rally was a bear market bounce so there are a lot of sellers out there. With what’s happening in Europe and China along with some economic uncertainty and midterms starting to factor into the equation, there’s a case to be made.
I’m still optimistic about the US growth picture and I think the student debt forgiveness and ‘anti-inflation’ bill add to that case, but that’s not the way the wind is blowing right now and technically, a return to the below 11,000 is compelling.