Two Trillion & Counting... The Mega-Cap Meltdown Continues

Since peaking on July 10th, the market cap of the Magnificent 7 stocks has dropped a mind-numbering $2 trillion...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

As another week goes by (the third in a row) with Small Caps (+3%) dramatically outperforming Nasdaq (-3%). The Dow ended the week green but S&P red (but closed above its 50DMA)...

two trillion counting the mega cap meltdown continues

That has crashed Nasdaq back into 'normal' range with the Russell for the last year...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

And the biggest three week underperformance of Nasdaq vs Small Caps since the very peak of the DotCom bubble...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

Treasuries have been broadly bid the last two days, with the long-end lagging (but managing to get back to unchanged on the week today) as the short-end yields tumbled...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

This drove the yield curve (2s30s) to disinvert most sine July 2022...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

Rate-cut expectations rose modestly on the week (focused fully in 2024 as 2025 remained flat)...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

The dollar drifted very modestly higher in a very noisy trading

two trillion counting the mega cap meltdown continues

Source: Bloomberg

Gold ended the week slightly lower, bouncing back today...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

Crypto markets were mixed this week with Bitcoin bouncing back strongly today, back up to $68,000...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

...but ETH seeing 'sell the news' relative pressure since the ETFs launched...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

Oil prices ended the week lower, chopping around back in a tight technical range it has found comfortable for months...

two trillion counting the mega cap meltdown continues

Source: Bloomberg

Finally, it's different this time... it's bigger....

two trillion counting the mega cap meltdown continues

Source: Bloomberg

...and remember, next week is the busiest of the summer -  massive macro events (JOLTs, BOJ, Euro CPI, US ECI, FOMC, BOE, NFP), coupled with massive earnings announcements (40% of SPX market cap next week).

Authored by Tyler Durden via ZeroHedge July 26th 2024