Visualizing why yesterday’s stock market reversal was so weird and unnerving
Technically, America’s flagship stock market index is only ~5% away from all-time highs. But an excellent observation from Sherwood News’ markets editor lent a bit of perspective on why yesterday’s remarkable stock market reversal feels so much more unnerving than it might look on paper.
Mostly, it’s down to the fact that what most people expected to feel like a party that raged long into the night — Nvidia did everything right, blowing the lights out on earnings and answering its harshest critics — was shut down at 8 p.m. Then the house caught on fire.
Here’s every single day of the S&P 500 Index from the last decade to give some more context on how unusual yesterday’s intraday swing was.
Nvidia did everything right. It pulled it off. It passed the test. But, at about 10:45 a.m. ET yesterday, the market decided it didn’t care.
Mostly, it’s down to the fact that what most people expected to feel like a party that raged long into the night — Nvidia did everything right, blowing the lights out on earnings and answering its harshest critics — was shut down at 8 p.m. Then the house caught on fire.
Here’s every single day of the S&P 500 Index from the last decade to give some more context on how unusual yesterday’s intraday swing was.
Nvidia did everything right. It pulled it off. It passed the test. But, at about 10:45 a.m. ET yesterday, the market decided it didn’t care.
