5 Things You Need To Know About The US Stocks Collapse
(1 min read)
US equities finally showed some weakness. The S&P500 fell 3.5% on Thursday, while the NASDAQ fell 5%. Here are five things you need to know about the drop:
1) The S&P usually bounces back from large one day drops. Since the 23 March low in the S&P 500, there have been 9 one-day declines of more than 2%. On average, the S&P has gained 3.5% over the subsequent 5 days. The best gain was 10% (after the 1 April drop) and the worst was -0.1% (after the 14 April drop).
2) Fed gatherings are bad for stocks. Thursday’s big drop came a week after the Jackson Hole gathering of Fed officials. The whopping 6% daily decline on 11 June came a day after a FOMC meeting, while the 3% decline on 1 May came a few days after a FOMC meeting too.
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