Yesterday's market nosedive has everyone talking. The S&P 500 dropped 2.3% and the NASDAQ plummeted 3.65%. These aren't just your average fluctuations – we might be looking at the possibly of the start of a serious crash.
The so-called "Magnificent Seven" (Apple, Tesla, Nvidia, Google, Amazon, Meta, and Microsoft) took an average hit of 4.6% in a single day. Given that these seven stocks make up 30% of the S&P 500, their performance can really shake things up.
So, what's behind this market tantrum? Let's look at a couple of key players:
- Alphabet (Google): Beat earnings expectations, but ad revenue growth slowed to 11%.
- Tesla: Revenue and earnings lower than expected, EV profits dropped due to price cuts.
The VIX, often called the "fear index," shot up 50% in one day – a big red flag. We might see the S&P 500 drop to around 5,000 points and the NASDAQ could be in for a 10-30% retracement.
So, buckle up, fellow investors. It might be bumpy, but those who weather the storm often come out stronger. Of course this is not financial advice!
Posted Using InLeo Alpha