Wall Street experienced its worst selloff since late 2022, with the Nasdaq Composite plummeting 3.6% and the S&P 500 dropping 2.3%. The decline paused the 2024 “everything rally” that saw gains across stocks, gold, crypto, and emerging markets.
Concerns over overstretched valuations in Big Tech, exacerbated by U.S.-China trade tensions and tepid earnings from Tesla and Alphabet, have fueled market anxiety. The VIX index spiked, signalling increased volatility. Tech stocks, particularly those in the “Magnificent Seven,” are under scrutiny as investors brace for more earnings reports. The drop has also affected commodities and global luxury stocks, with Europe’s luxury giants losing significant value. Amid this turbulence, Bitcoin fell 5% over five days, currently trading around $64,000.
Analysts caution that without solid Q2 results and positive guidance, further profit-taking is likely. The market’s future remains uncertain, with geopolitical risks and economic slowdown adding to the complexity. Investors are now reevaluating their positions, eyeing potential buying opportunities amid the volatility.
