Market Report Aug 03 2023

Despite expectations of low trading volume during the pre-NFP and holiday season, August began with unexpectedly higher volume levels, mainly due to increased selling pressure in the markets this week. Notably, yesterday’s trading volume surpassed the prior day's levels, and the Nasdaq experienced above-average volume.

Wednesday's trading session saw a significant decline in stock prices, with the S&P 500 reaching a two-week low and the Nasdaq 100 hitting a three-week low.

The weakness in mega-cap stocks negatively impacted the broader market, leading to a disproportionate selling interest. This selling pressure could be attributed to concerns surrounding rising interest rates and the recent US downgrade by Fitch.

VIX supplied the feel of the fear creeping into the market with a 15.51% bounce up.

Javid Shaik

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