Stock Market Update

The S&P 500 futures are down 187 points and are trading 3.5% below fair value, the Nasdaq 100 futures are down 925 points and are trading 2.2% below fair value, and the Dow Jones Industrial Average futures are down 925 points and are trading 2.2% below fair value.

The global sell off that began late last week on fears about US economic growth has continued. Treasury yields are sliding and contracts tied to the S&P 500, Nasdaq 100, and Dow are sharply lower. The 10-yr note yield is down eight basis points to 3.71% and the 2-yr note yield is down 14 basis points to 3.73%.

Mega cap stocks and semiconductor shares show solid pre-open decline, contributing to the strong downside bias.

Japan's Nikkei (-13.5%) plunged to levels last seen in November while the yen climbed to 142/dollar, reaching its best level against the dollar since early January.

Oil prices continue to decline in another manifestation of growth concerns. WTI crude oil futures are down 2.1% to $72.00/bbl.

In corporate news:

• Nvidia (NVDA 93.31, -14.14, -13.0%): chip has been delayed, which might impact Microsoft (MSFT), Google (GOOG, GOOGL), and Meta (META), according to the Information; 
• Apple (AAPL 202.81, -17.31, -7.8%): Berkshire Hathaway cut its stake in AAPL by approx. 50%
• CrowdStrike (CRWD 201.09, -16.80, -7.7%): tells Delta (DAL) that it isn't responsible for the airline's losses, according to WSJ
• Coinbase Global (COIN 172.39, -32.05, -15.7%): dropping ahead of the open amid falling cryptocurrency prices. Bitcoin is at $51,540.
• Kellanova (K 79.55, +13.57, +21.6%): Mars mulling acquisition of Kellanova, according to WSJ

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a sharply lower note. Japan's Nikkei: -12.4%, Hong Kong's Hang Seng: -1.5%, China's Shanghai Composite: -1.5%, India's Sensex: -2.7%, South Korea's Kospi: -8.8%, Australia's ASX All Ordinaries: -3.8%.
  • In economic data:
    • China's July Caixin Services PMI 52.1 (expected 51.4; last 51.2)
    • Japan's July Services PMI 53.7 (expected 53.9; last 49.4)
    • India's July Services PMI 60.3 (expected 61.6; last 60.5)
    • Singapore's June Retail Sales -3.7% m/m (last 2.4%); -0.6% yr/yr (last 2.2%)
    • Hong Kong's July Manufacturing PMI 49.5 (last 48.2)
    • Australia's July Services PMI 50.4 (expected 50.8; last 51.2). July MI Inflation Gauge 0.4% m/m (last 0.3%)
  • In news:
    • Japan's Nikkei (-13.5%) plunging to levels last seen in November while the yen climbed to 142/dollar, reaching its best level against the dollar since early January.
    • Trading in the Nikkei was halted twice, and chipmakers listed in Japan and South Korea struggled notably.
    • South Korea's finance ministry said that measures will be taken to respond to increased volatility.
• Major European indices trade in the red, reflecting a continuation of recent concerns about growth. STOXX Europe 600: -2.7%, Germany's DAX: -2.6%, U.K.'s FTSE 100: -2.5%, France's CAC 40: -2.2%, Italy's FTSE MIB: -3.0%, Spain's IBEX 35: -2.7%.
  • In economic data:
    • Eurozone's June PPI 0.5% m/m (expected 0.1%; last -0.2%); -3.2% yr/yr (expected -3.3%; last -4.1%). July Services PMI 51.9, as expected (last 52.8). August Sentix Investor Confidence -13.9 (expected -5.5; last -7.3)
    • Germany's July Services PMI 52.5 (expected 52.0; last 53.1)
    • U.K.'s July Services PMI 52.5 (expected 52.4; last 52.1)
    • France's July Services PMI 50.1 (expected 50.7; last 49.6)
    • Italy's July Services PMI 51.7 (expected 53.0; last 53.7)
    • Spain's July Services PMI 53.9 (expected 56.2; last 56.8)
  • In news:
    • Economic data from the region showed better-than-expected final July Services PMI readings from Germany (52.5) and the U.K. (52.5) while the Services PMI for the eurozone (51.9) matched expectations.
    • The EU is on track to approve tariffs on imports of electric vehicles from China, according to FT.