tl;dr
U.S. stock futures plunged on Sunday evening, sparking concerns of a potential "Black Monday" sell-off. S&P 500 futures dropped 5.98%, Nasdaq 100 futures slid 6.2%, and Dow futures were down 5.5%. This followed escalating trade tensions and macro uncertainty, leading to risk-off sentiment across ass...
U.S. stock futures tumbled on Sunday evening, fueling concerns of a potential "Black Monday" style selloff. This was reflected in the significant drops in Asian markets, with Japan's Nikkei 225 falling by 8.9% and Taiwan's Taiex index plunging nearly 10%. The crypto market also experienced liquidations amid global market uncertainties, with Bitcoin and gold prices dropping and the volatility index futures ($VIX) surging. Both institutional and retail investors offloaded equities, leading to a bearish investor sentiment. As markets await the U.S. open and fresh inflation data, the situation remains tense, with fears of a disorderly market open and speculations of further selloffs.
Sentiments across equities and crypto have collapsed, with various indices such as the S&P 500, Nasdaq 100, and Dow futures experiencing significant drops. This came after weeks of mounting trade tensions and macro uncertainty, prompting investors to offload risk across all asset classes. The fear-driven phase has led to substantial outflows, bearish sentiment, and a decline in crypto prices and the global crypto market cap by 10%.
The situation was exacerbated by the spike in liquidations, reaching roughly $892 million in the crypto market. Additionally, the volatility index futures ($VIX) surged above their August 2024 peak, indicating heightened market volatility. Notably, retail investors sold a record-breaking $1.5 billion in equities during a 2.5-hour window, while institutional capital continued to rotate out of U.S. equities at a swift pace, marking the sharpest exit in years. The latest AAII sentiment survey showed 61.9% of investors being bearish, with only 21.8% expressing bullish sentiment.
The crypto market mirrored these trends, with Bitcoin falling below $80,000 and Ethereum dropping under $1,800. The global crypto market cap fell to $2.57 trillion. Market watchers are now waiting for the next directional catalyst, with fresh inflation data due later in the week. The prevailing atmosphere suggests a cautious approach, as the potential for a disorderly market open looms, and speculation about further selloffs persists.