Equities:
U.S. equities moved sharply lower in mass, with three of the major indices losing more than 2% yesterday. A common question is: Why are stocks down? While there can be many explanations, such as trade tensions with China or uncertainty about interest rates going forward, it all boils down to one thing. There are more sellers than buyers. This market is probing to find an equilibrium between sellers and buyers. Some of the best performing sectors lately have been defensive sectors such as real estate and utilities, but yesterday they were some of the worst performers, both losing more than 3%. That may be a sign of exhaustion to the downside when they give up the fight. On the day, the Dow Jones Industrials ($DJI) lost 2.1% to 23592.98, the Nasdaq Composite (COMP) fell 2.3% to 6753.73, and the S&P 500 (SPX) dropped 2.1% to 2545.94.
U.S. equities moved sharply lower in mass, with three of the major indices losing more than 2% yesterday. A common question is: Why are stocks down? While there can be many explanations, such as trade tensions with China or uncertainty about interest rates going forward, it all boils down to one thing. There are more sellers than buyers. This market is probing to find an equilibrium between sellers and buyers. Some of the best performing sectors lately have been defensive sectors such as real estate and utilities, but yesterday they were some of the worst performers, both losing more than 3%. That may be a sign of exhaustion to the downside when they give up the fight. On the day, the Dow Jones Industrials ($DJI) lost 2.1% to 23592.98, the Nasdaq Composite (COMP) fell 2.3% to 6753.73, and the S&P 500 (SPX) dropped 2.1% to 2545.94.
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