Equities Plummet as Yield Pressures Mount☕
Equities bled across the board with the SPX trading down nearly -1.5%, and Nasdaq -2.5%. Ongoing yield pressures and poor Alphabet results saw the stock falter by the 3rd largest daily drop since the 2004 IPO(!!!). Furthermore, despite blowing past analyst estimates on both sales and user growth and reporting one of the most profitable quarters recently, Meta saw a -5% turnround in the after hours as investors fretted over the CFO's warnings of weaker advertising trends in Q4. We see the abrupt investor reaction over a very solid quarter to be reflective of a strong change in risk sentiment, and we believe that risk assets will be in for a tough ride in the next few weeks ahead.
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