that delivered the Dows worst week since late October, with a 3.45 per cent loss even though ten-year Treasury notes slipped six basis points to 1.449%, down for a fifth straight week.
Get ready to hear about the “reverse rotation ” for the time being, at least until somebody can hashtag a new theory for punters to digest easily.
The market doesn’t really need an excuse to sell off past inflated price-earnings ratio anyway but by tomorrow, we may be blaming it on the Quadruple witching, on Friday, which is when stock options, single-stock futures, and stock-index options and stock futures have a simultaneous expiration.
While there are no significant additions or subtractions in the S&P this time, analysts estimate some $30 billion of stocks will trade from this impetus.
As buybacks tend to rise with S&P 500 earnings, and that’s on track to hit $1.5 trillion this year, there could be plenty of buying in markets yet.
All 11 sectors of the S&P 500 were lower Friday, led by a 2.1% decline in financials as banks copped it again.
The pessimistic take on the hot buyback activity is that they typically peak when stocks are at their most expensive, so these aren’t precisely cheap exercises for any of them.
As there’s’ a very high inverse correlation between the dollar and base metal prices, commodities slumped, with some of the most significant one-day drops since March 2020.
Our futures have slumped 81 points thirty minutes to open as we brace ourselves for the global sell-off to hit our shores.
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Advanced Share Registry Limited published this content on 21 June 2021 and is solely responsible for the information contained therein.