‘Believe in this bull market but shield yourself against rash decisions’: What market pros are saying about Tuesday’s selloffWall Street’s main indexes slid on Tuesday, with the S&P 500 down more than 2% and the Nasdaq Composite down over 3% as investors softened their optimism about AI in a broad market sell-off following tepid economic data. The benchmark S&P 500 index, Nasdaq and Dow are on track for their biggest daily declines since early August. The TSX also fell.
“Then there are the earnings – it’s also hard to keep beating those high expectations. Plus, now we have Broadcom’s results due Thursday. And if you put ten people in a room and asked them why this is happening, at least one would point to the election and the possibility that a new administration would do something to tariffs that would affect chips.
“September is seasonally a very weak month of the year, so I think people are nervous. People are just using this as an excuse to take profits and the most likely candidates to take profits are the semis, because they’ve been the strongest.”“We ran right back up to the new high again. There was absolutely zero news over the weekend that meant anything to anybody. But here we are down 600 points.”
“The market is worried about how drastic the slowdown is going to be. The tech sector, even with this pullback we’ve had today, it’s still up a lot for the year and these things have moved a lot. These stocks led the chart up and on down days they will lead the chart down. When you look at something like 2/10 inversions the last 8 recessions curve has gone positive before recession occurs and we’re only a few basis points away. The market is thinking about that too.