Markets In Freefall: Stocks Extend Worst Ever Start To Year

Today's business media summarized...

 

Today's actual market summarized...

 

Let's start with this - The market has now reduced March rate-hike odds back to pre-December rate-hike levels (at just 35%)...

 

Two words - Policy... Error...

 

This remains the worst start to a year... ever...

 

Across the major US equity markets, it's a bloodbath...

*RUSSELL 2000 CAPS 22% DROP FROM JUNE RECORD, ENTERS BEAR MARKET

 

With the Nasdaq about to be the lasty major index to give up its post-QE3 gains...

 

Year to Date - it's just as ugly...

 

And since The Fed hiked rates...

 

VIX term structure inverted but we are a long way from an August-like panic-bottom...

 

There is at least some rationality resumiong as weak balance sheet stocks underperform strong balance sheet firms...

 

With selling out of the gate and only a small bounce in the last hour, equity markets carnaged...

 

FANGs entered a correction...

 

And FANTAsy stocks were smashed today...

 

Lots of head-scratching at how this is possible... except for anyone who pays attention to credit markets...

 

As HYG plunges to its lowest close since July 2009... Today was worst day in 4 weeks

 

US Energy credit risk is soaring back to near 2008 crisis highs...

h/t @JavierBlas2

 

While High yield bonds were crashing, Treasuries were aggressively bid (despite the Inbev issuance), on the verge of flash-crashing a few times after a stronmg 10Y auction...

 

The USDollar Index ended the day unchanged as early strength was sold - but it remains up on the week... CAD was smashed to new 12 yeasr lows

 

Gold ansd Silver rallied as Crude and Copper crumbled...

 

As stocks plunged at the US open so PMs ripped...

 

As if by magic, WTI's NYMEX close was adjusted very slightly higher to enable a tiny green print... but the trend was clear...

 

Charts: Bloomberg

Bonus Chart: Some food for thought...

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