The US equity market has been carried by a handful of megacap tech stocks this year but they're starting to show some cracks. Tesla announced poor delivery numbers at the start of October and the market is worried about higher interest rates.
Today, the Nasdaq is down 1.5% and trading at a session low in the final hour of trading. It's also at a one-week low.
Shares of Tesla are under pressure, down 4.7%, which is a two week low.
Meanwhile, shares of Netflix are at the lowest since May and down 2.8% today.
Another big laggard is NVDA, which is down heavily for the second day on US chip export curbs to China.
Expect some big moves after earnings in both TSLA and NFLX. You would expect more pain broadly if they disappoint but this is a turbulent market and you have to be careful drawing historical parallels. Ultimately though, yields are blowing out and the rise in 10-years above 4.88% puts them on a clear path to 5% and I don't get the sense that anyone wants to buy anything until that's at least touched.
