US Stock Futures Plunge- US Stocks and Bitcoin Face Major Drop
US Stock Futures Plunge– U.S. stock futures dropped sharply on Sunday evening, fueling concerns of a chaotic market opening and sparking speculation about a potential “Black Monday”-style selloff. As sentiment across both equities and crypto markets deteriorated, the S&P 500 futures fell by 5.98%, Nasdaq 100 futures dropped 6.2%, and Dow futures declined by 5.5%. This decline came after weeks of rising trade tensions and macroeconomic uncertainty, with investors moving away from riskier assets.
Asian markets mirrored the growing risk-aversion sentiment, with Japan’s Nikkei 225 losing as much as 8.9% in early trading. Taiwan’s Taiex index also plunged nearly 10%, prompting circuit breakers to be triggered for major companies such as TSMC and Foxconn. In the cryptocurrency market, liquidations surged, reaching approximately $892 million, including more than $300 million in Bitcoin long and short positions, according to CoinGlass data.
Bitcoin, Gold, and Risk-Off Trades Take a Hit
“Not only has Bitcoin broken below $80,000, but gold has also dropped under $3,000,” said Marco Lim, managing director at Solowin Holdings, speaking to Decrypt. This shift in markets has led to concerns that if USD/JPY continues to fall, we could witness further unwinding of carry trades, where investors start pulling capital from higher-yielding assets.
The Kobeissi Letter, a popular macro newsletter, described the current market situation as entering a fear-driven phase, noting that even traditionally safer assets like gold were experiencing sell-offs. It also pointed out that market sentiment was nearing the levels last seen in March 2020. Retail investors contributed significantly to this selloff, with $1.5 billion in equities sold during a 2.5-hour window on Friday.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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