Key Takeaways

  • The S&P 500 closed at 4,397.94  down from 4,662.85 last Friday . The VIX settled at  $28.85, its highest level in a while.
  • The Nasdaq entered correction territory having its worse week since 2020. It seemed to be bouncing on Thursday and promptly reversed at the end of the trading day. Netflix’s slowing growth dragged on it again Friday.
  • Financials had a mixed earnings and have lost almost 5.5% as a sector in 5 days. Energy continued its relative outperformance. Staples, Utilities and Real Estate rallied Friday.
  • The selling has been pretty broad-based this week, but certain areas of the market have been hard hit. All eyes are on the Fed meeting next week.

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Markets had a very rough week. The Nasdaq entered correction territory and despite attempting a bounceback on Thursday, Netflix’s disappointing guidance and slowing growth continued the drag on markets. It declined 5.9% since Monday. This was the worst week for the index since 2020. On Tuesday, the US 10-YR hit a 2-year high of 1.87% but has since retreated about 10 bps. However, given the pace of selling, markets are certainly being driven by panic and fear more than fundamentals. Elevated volatility from recently more stable levels have been seen th...

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