NEWS
Narrative Shift Leads To A Nosedive

It was the worst day for the Nasdaq since 2022, with tech megacaps losing close to $1 trillion in market capitalization. Recessions fears continue to rise, sending global risk takers to the sidelines and long-term bulls waiting for a catalyst to break the market’s fall before jumping back into their favorite names. 👀 

Today's issue covers signs that Main Street is sliding alongside Wall Street, Redfin being rescued, another space stock slipping, and more from the day. 📰

Here’s the S&P 500 heatmap. 2 of 11 sectors closed green, with utilities (+1.10%) leading and technology (-4.25%) lagging.

And here are the closing prices: 

STOCKS
Main Street Slides Alongside Wall Street 😱 

Wall Street’s recent decline from its highs and Trump’s policies introducing economic uncertainty has combined to hit consumers and businesses alike. There’s no better sign of that than Delta Air Lines plunging 15% after slashing its outlook.

The airline cut its first-quarter profit and sales forecast due to weaker domestic travel demand and citing declines in both corporate and leisure bookings. 📊 

“The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand.” On CNBC, CEO Ed Bastian said he does not expect a recession but that consumers and businesses are pulling back due to the uncertain macro environment.

This real-world impact is what Wall Street is finally pricing into risk assets. The same risks that exist today existed several weeks and months ago, but now the market has decided it cares enough to act on it. As we’ve discussed, the bulls are losing the narrative game and lack a clear catalyst to turn the tide. 🐻 

Risk assets, in general, continue to trend lower, with traders and investors looking for signs of capitulation. Bitcoin broke back below $80,000, while Robinhood, Reddit, Coinbase, MicroStrategy, and SoFi all sank double digits today. 📉 

Oarcle earnings after the bell offered little to no help for the bulls. Although the company touted its data center growth from AI, with revenue from its cloud infrastructure unit rising 49% YoY, its earnings and revenues still missed estimates.

Revenue rose just 6% YoY, with its cloud services business rising 10% YoY and accounting for 78% of its total sales. Oracle Chair Larry Ellison said “customer demand is at record levels” for its cloud infrastructure unit, and that the company is scheduled to double its data center capacity this calendar year. 🤖 

With Stocktwits community sentiment still in ‘extremely bearish’ territory for all the major indexes, investors and traders are looking for clear signs of a bottom. Some are looking for a spike in put buying or overall trading volumes. Regardless of what measure they’re using, almost everyone is looking for a “washout” type move where prices quickly reverse and provide a low to trade against.

Time will tell if tomorrow is “Turnaround Tuesday” or “Terrible Tuesday,” but either way, overnight volatility and fear is expected. 😬 

STOCKTWITS COMMUNITY
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