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Stocks, Yield Curve Collapse, Nasdaq Enters Bear Market As Mnuchin Jawbone Fails

Summary:
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 ...

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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.

Stocks, Yield Curve Collapse, Nasdaq Enters Bear Market As Mnuchin Jawbone Fails

All the major indices are falling hard..

Stocks, Yield Curve Collapse, Nasdaq Enters Bear Market As Mnuchin Jawbone Fails

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

Stocks, Yield Curve Collapse, Nasdaq Enters Bear Market As Mnuchin Jawbone Fails

And VIX is above 28...

Stocks, Yield Curve Collapse, Nasdaq Enters Bear Market As Mnuchin Jawbone Fails

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 signle-digits

Stocks, Yield Curve Collapse, Nasdaq Enters Bear Market As Mnuchin Jawbone Fails

And don't forget tomorrow is Quad witch.

Tyler Durden
Tyler Durden (a pseudonym) represents the idea that a return to truly efficient markets is a possibility and a necessity. After having experienced the inner workings of capitalism at various asset managers and advisors, Tyler believes that the current model is flawed and a deleveraging at every level of modern society is needed to reinspire the fundamental entrepreneurial spirit. Visit his blog: ZeroHedge (http://www.zerohedge.com/)

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