James Brodie
Head of Learning & Development, Flux
KOSPI Down, Apple Becomes Largest Company in the World, Fed Meeting Tonight
Hawkish Fed fears grow as AI sell-off deepens, yields rise, Korea tumbles, and major tech earnings loom.
Rate strategists at both Bk of America & JP Morgan now see yields higher with a hawkish Fed tonight.
BofA see 2 year yields higher, while JPM prefer a 5yr-30yr flattening trade.
Kospi, after another day of circuit breakers currently down 6%. An 80% rally over 10 weeks immediately followed by a 40% drop in five weeks. The South Korea index has fallen from the world's 6th-largest stock market to 11th after the crash.
SK Hynix second-quarter profit surges 557% to a new high — but misses estimates, falls 13%.
Nasdaq 100 slides into correction territory as the AI sell-off deepens while the S&P 500 ex-AI quietly hits a fresh all-time high. The great market rotation is no longer just a theory.
Odd stat - For the first time in history SPX was positive three days in a row While QQQ was negative three days in a row
CTAs haven’t even started selling yet. (Chart: @Marlin_Capital)
Month to date unwind bordering on historic (Chart: @The_Real_Fly)
Apple is now the second company in history to surpass $5 trillion in market cap. This makes Apple the largest company in the world, now 6% larger than Nvidia.
Goldman's high beta momentum basket on track for worst monthly performance in history, worse than 2000 and 2009. (Chart: Hedgeye, Bloomberg)
Oracle CDS at levels not seen since the GFC. (Chart: Bloomberg)
On top of the Fed meeting tonight we have Microsoft, Facebook, Qualcomm and ARM all reporting earnings.
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