Stocks Plunge To Lows, Nasdaq Enters Bear Market As Mnuchin Jawbone Fails

Stocks dropped to sessions lows, with the Nasdaq following the Russell 2000 and Tokyo-traded shares into bear-market territory, after Treasury Secretary Steven Mnuchin said Thursday that the market "overreacted" to Fed Chairman Jerome Powell's remarks a day earlier.

  • MNUCHIN SAYS MARKET OVER-REACTED TO FED'S COMMENTS
  • MNUCHIN: MARKET WAS DISAPPOINTED WITH FED CHAIRMAN COMMENTS
  • MNUCHIN SAYS HE FOCUSES ON FED'S INFLATION PROJECTION
  • MNUCHIN: IF LOW INFLATION CONTINUES, FED RATE PATH MAY CHANGE
  • MNUCHIN: WE'RE COMFORTABLE WITH TREASURY SUPPLY, NOT AS WORRIED AS MARKETS APPEAR

But the market seems anxious that Mnuchin feels the need to jawbone this back... and it's failing fast.

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All the major indices are falling hard...

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The Nasdaq just entered a bear market and is down 5% from the FOMC Statement:

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And VIX is above 28...

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Across the majors:

  • Dow -15%
  • S&P -16%
  • Nasdaq Composite -20%
  • Trannies -22%
  • Russell 2000 -24%
  • FANGs -29%
  • GSIBs -35%
  • Goldman Sachs -39%

And the yield curve is flashing bright red policy error signals...2s10s down to single-digits

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And don't forget tomorrow is Quad witch.

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