Stocks Enter Selloff Mode, Nasdaq Extends Losses

The video discusses the current market downturn, with major indices like NASDAQ and S&P 500 experiencing significant declines. It highlights the shift from tech to cyclical sectors, which are now also under pressure. Defensive sectors like utilities and healthcare are performing better despite rising yields. The fear of continued rate hikes by the Fed is causing concern about risk assets, reminiscent of past market conditions.

What was the percentage drop in the NASDAQ last week, marking its worst week since March 2021?

• 2%

• 3%

• 4%

• 5%

Which sectors are considered defensive and performed relatively better during the market downturn?

• Technology and Consumer Discretionary

• Communication Services and Industrials

• Utilities and Healthcare

• Energy and Financials

What is the main reason for the decline in tech and consumer discretionary stocks?

• Rising yields

• Increased competition

• Decreasing consumer demand

• Supply chain disruptions

What is the significance of the 10-year real yield rising by 30 basis points?

• It indicates a decrease in inflation

• It suggests a potential economic boom

• It reflects fears of rising interest rates

• It shows a stable economic environment

What could be the potential impact if the Fed tightens and the balance sheet flattens?

• A brutal repricing of risk assets

• Higher consumer spending

• A boost in tech stocks

• Increased market stability