It was a Sea of Red in global financial markets as some volatility indicators hit their highest levels in years. The S&P experienced its biggest 1-day drop since September 2022 with the other major indices suffering similar losses as recession fears increased in the US.
The dollar ultimately closed the day about 0.5% lower, but that was not anywhere near the whole story as currencies moved percentages within hourly trades and options markets could not find liquidity to price for extended periods. US Treasury yields hit 1-year lows with talk of an inter-meeting cut from the Fed exacerbating moves, although both the 2-year and 10-year closed close to flat after the disparity turned positive for the first time in 2 years.
Oil and Gold prices both fell as well with Gold notably dropping over 3% before reclaiming some lost ground later in the day.
Traders are bracing themselves for more volatility in the sessions ahead as the market remains nervous of any downside risks. Australian markets will come into focus early in the day with the latest RBA rate update but there is little else out on the calendar in the following sessions in terms of tier 1 event risk to influence sentiment.
| Market | Change | Close |
| Dow | -2.59% | 38,706 |
| S&P | -2.98% | 5,187 |
| Nasdaq | -3.38% | 16,208 |
| USD | -0.46% | 102.68 |
| US Treasury – 2 Year | +1 bps | 3.883% |
| US Treasury – 10 Year | -2.3 bps | 3.773% |
| Oil – Brent | -0.66% | $76.30 |
| Oil – WTI | -0.79% | $72.94 |
| Gold | -1.34% | $2,409 |
Today’s Events (AEST):
Asian Session
- 2.30 pm – Australia – Reserve Bank of Australia Rate Decision
- 3.30 pm – Australia – Reserve Bank of Australia Press Conference
European Session
- 6.30 pm – UK – Construction PMI Data
US Session
- 10.30 pm – US – Trade Balance Data
- 10.30 pm – Canada – Trade Balance Data
