The stock market is sluggish and the market risk sentiment is strong☕
The stock market fell across the board, with the SPX index falling nearly 1.5% and the Nasdaq index falling 2.5%. Continued pressure on yields and poor performance led to the third largest single-day drop in Alphabet's stock price since its IPO in 2004 (!!!). In addition, , although Meta's revenue and user growth exceeded analysts' estimates, and its quarterly profit was one of its best in recent times, Meta's stock price fell as the CFO's warning about weak advertising trends in the fourth quarter raised investor concerns. It fell 5% after hours. We believe that the relatively extreme reaction of investors in a very solid earnings season reflects a strong shift in market risk sentiment, and risk assets are likely to experience a more difficult period in the coming weeks.
