Wake Up Wall Street (SPX) (QQQ): Meme stock massacre as equity markets tumble, yields dump

Here is what you need to know on Thursday, July 8:

It is proving a tough day for many of our new retail investors as the meme stock space shows its high beta colours. Wednesday saw many of the favourites – AMC, GME, WISH, PLTR, CCIV and others – take a fair hammering, and there is no change in Thursday's premarket. We always preach here at FXStreet the importance of careful risk management and using stops. This keeps you in the game longer, so hopefully some new retail traders have taken this approach. Many have not though judging by the "hold tight" and "diamond hands" comments on social media, so a significant turnaround will result in significant pain. That is exactly what is happening across global equity markets today as a combination of bearish news finally comes to a boil. We are talking data, Delta, earnings and the Fed. Delta is causing lockdowns, data has been disappointing, earnings season beckons, and Q1 is a tough act to follow. The Fed minutes showed taper talk and a tantrum is not far away. 

And we have not even mentioned Oil. To be fair it has dumped a bit overnight, back to $71, but the uncertainty over OPEC has not helped as it surged to multi-year highs above $78 on Wednesday.

See forex today

The dollar is weaker at 1.1844 versus the euro. Gold is at $1,817, and Bitcoin is lower at just under $33,000. The VIX has popped to nearly 20, but globally yields are dumping. China signaled overnight it may ease monetary policy, and Wells Fargo said in a note that the move in US yields is technical. The US 10-year is now at 1.27%, while the German 10-year drops 10% to -0.33%. Bank stocks will not take this move too well.

European markets are lower: FTSE -2%, DAX -2% and Eurostoxx -2.4%.

US futures are also lower: Dow -1.3%, S&P -1.4% and Nasdaq -1.4%.

Wall Street top news

US jobless claims 373K versus 350K expected.

Reports say the Bank of Japan will lower its growth forecasts.

State of emergency declared in Tokyo and no fans at Olympics.

OECD says new covid outbreaks are a top risk to economic recovery.

Newegg (NEGG) down 20% premarket, a new retail favourite.

AMC down 11% premarket, GME down 7%.

WD-40 (WDFC) up 7% premarket on strong results.

Bank stocks down on yields, BAC, GS, JPM, C, USB.

Charles Schwab (SCHW): Goldman Sachs downgrades.

Alphabet (GOOGL): A number of US states take an anti-trust case in relation to the Google Play store on Android phones-CNBC.

Kansas City Southern (KSU) sets August 19 as the date for meeting on the deal with Canadian National Railway (CNI).

Upgrades, downgrades and premarket movers

Source: Benzinga Pro

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