“All good things must come to an end — but this isn’t the end of the world for the US stock market,” said Jay Woods, chief global strategist at Freedom Capital Markets. “The rotation trade into small caps and value is still on, with volatility picking up as weak seasonal factors come into play ahead of US election season.”
A steep selloff in high-flying technology stocks sent the S&P 500 Index to its worst day since December 2022, ending its best stretch without a 2% decline since the start of the global financial crisis in 2007.
The US equities benchmark slid 2.3% on Wednesday, ending 356 sessions through Tuesday without a drop of at least 2% — its longest streak in 17 years, according to data compiled by Bloomberg. This comes after the index rose as much as 15% above its 200-day moving average last week — a crucial level that has historically foretold past selloffs.
