Global markets are trading in a slightly nervous fashion as they brace themselves for a potential correction in US tech stocks. So far, the correction has been modest compared to the 25% fall in bitcoin, but events over the next 24 hours will have a say in whether moves extend. We'll have FOMC minutes, Nvidia earnings and the September jobs reporta
Volatility is back again after relatively unsurprising sessions since the past week FOMC.
It seems that the since last week, the 2025 theme of currency debasing, seeing a huge rally in metals (Gold, Silver at their yearly highs) and equities was intact after the September meeting which resulted in a cut.
S&P 500 with Nasdaq almost retested Wednesday‘s lows – unlike Russell 2000, which refused to correct meaningfully Friday premarket. That was but one of the signs of what to expect – and all clients were ready as to what I expected to unfold, and what was the game plan.
There were a few signals traders could have spotted ahead of the ongoing selloff.
After last Friday's warning from Bitcoin, with an all-time high leading to a direct retracement, the crypto market has started to make its way off its most recent highs.
Risk assets were down again on Monday in the run-up to what Trump has dubbed Liberation Day on 2 April, when he is due to announce a raft of reciprocal customs tariffs, which would see the trade war take on a global dimension.
Diplomatic efforts have intensified to stop the fighting between both Russia and Ukraine as well as Israel and Hamas. But a durable resolution to both conflicts will not be easy to achieve. The public disagreement in the White House between President Trump and his Ukrainian counterpart underlined the challenges.
The markets do not really seem to share Donald Trump's indifference to the short-term impact of his policies on the US economy.
