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S&P 500 Enters Correction, Momentum Names Drop Hard

EQUITIES
  • Stocks across Wall Street sank sharply Monday, with evidence of programmatic selling from the opening bell. This swiftly saw prices sink further, resulting in the S&P 500 formally entering correction territory - a 10% decline from the early January high.
  • At some points of the session, as many as half the 500 names in the S&P 500 were off by 3% or more, with momentum/growth/tech names leading the decline.
  • The moves come as markets gear for further economic normalization - through both interest rate rises as well as a transition from the pandemic phase to the endemic phase of COVID-19.
  • As a result, the worst performing sectors were tech, communication services and biotech names. The healthcare sector, which usually trades defensively on a down-day for the index, also sat lower, with jabmakers suffering, typified by the >10% drop in Moderna.

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