Nomura Lists The Systematic Triggers That Can Trigger A Liquidation Waterfall

Stocks are sliding and trading near session lows, following a report that ChatGPT is badly lagging its internal bogeys and may not be able to fund its massive $1.5 trillion in funding commitments. Crude and TSY Yields are also easing from earlier highs in a “sigh of relief” (and thanks to a remarkable bit of POTUS hustle with his eye-watering 9:29:27am EST pre-Equities opening Truth Social post claiming Iran wants the US to Open the SoH, which it doesn't).

But as Nomura's Charlie McElligott writes in his daily note today, before the Trump last second intervention, we got a taste of the required “Selloff Playbook” catalysts to see equities pullback, which if amplified could lead to a powerful liquidation cascade.