Falling Knives
Last week was a wild one for US stocks.
The $S&P 500(.SPX)$ ell -2.7% on the week. The $NASDAQ(.IXIC)$ dropped -3.4%, its 4th straight losing week.
But the story of the week was Thursday’s massacre.
The SPX fell -4.4%, its worst day of 2026. The $Invesco QQQ(QQQ)$ dropped -6.5%. Semis got hit the hardest, with the $Philadelphia Semiconductor Index(SOX)$ tanking -12.3%.
Friday brought some relief with an oversold bounce. The Nasdaq finished +1.1% and the SPX +0.3%. But the $Dow Jones(.DJI)$ finished down -0.5%.
Thursday’s Meltdown
Thursday’s selloff was historic.
It was the 2nd worst day in the history of the Semiconductor Index (dating back to 1994). 👇
Morgan Stanley’s US TMT Momentum bucket is now down -70% from its June highs. This is its largest 1 year drawdown on record.
It was also the 4th worst day for the Nasdaq 100 in the last 15 years, and the 31st worst day EVER.
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