'Old School Summer Risk-Off:' VIX Up Over 50%, Nasdaq 100 Enters Correction, Chipmakers Officially In Bear Market; Small Caps Tumble
Portfolio Pulse from Piero Cingari
Risk-off sentiment led to significant losses in equities, with the VIX up over 50%, Nasdaq 100 entering correction, and chipmakers in a bear market. Small caps also tumbled.
August 02, 2024 | 3:34 pm
News sentiment analysis
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NEGATIVE IMPACT
The iShares Russell 2000 ETF is on track for a 7% drop over the last two sessions, marking its worst selloff in over two years.
The significant drop in IWM indicates a strong negative sentiment in small caps, likely leading to further short-term declines.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
The Invesco QQQ Trust fell 3% on Friday, marking its worst two-day decline since November 2022. The index has now entered a correction phase, down over 11% from its July peak.
The significant drop in QQQ indicates a strong negative sentiment in the tech sector, likely leading to further short-term declines.
CONFIDENCE 95
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
The iShares Semiconductor ETF has entered a bear market, falling more than 20% from its all-time highs in July. The ETF has also fallen below the 200-day moving average.
The sharp decline in SOXX reflects severe negative sentiment in the semiconductor industry, likely leading to continued short-term weakness.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 85