Nasdaq wipes out yesterday’s rally as the selling accelerates

The market has gone from euphoria to fear in a heartbeat.

There was a ‘buy everything’ mode yesterday as the market pushed to price in more Fed rate cuts due to a weakening economy. Now, the market is starting to sense too much economic weakness is coming and that the Fed is behind the curve.

The rates market is now pricing in a 20.5% chance of a 50 bps cut in September and that has the market worried. The Nasdaq has given back all of yesterday’s gains and is down 2.6%.

Western Digital, Lam Research and Qualcomm lead the decliners but other chipmakers are also struggling. Shares of META are still a source of strength but have come down quickly after a very strong start.

This article was written by Adam Button at www.forexlive.com.