S&P 500 futures point to a 35-point bounce
Stocks set for a bounce
Equities tumbled yesterday and closed at the lows but they're set for a solid bounce today. S&P 500 futures are 35 points above fair value after yesterday's 95 point drop. The Nasdaq is now down more than 10% in three trading days.
Earlier today on CNBC, Stanley Druckenmiller said a hangover is inevitable after the 'big party' in stock markets.
"Right now, we're in an absolute raging mania. We've got commentators encouraging companies to do stock splits. Companies then go up 50%, 30%, 40% on stock splits. That brings no value, but the stocks go up," he said.
"I have no clue where the market is gonna go in the near term. I don't know whether it's going to go up 10%; I don't know whether it's going to go down 10%," Druckenmiller said. "But I would say the next three-to-five years are going to be very, very challenging."
"The merging of the Fed and the Treasury, which is effectively what's happening during Covid, sets a precedent that we've never seen since the Fed got its independence," Druckenmiller said. "It's obviously creating a massive, massive mania in financial assets."