The mood continues to sour in US equities in the second day of heavy selling. The S&P 500 has extended its decline to 86 points, or 2.0%. The Nasdaq is down 2.4%.
The S&P 500 stalled out last week right at the 200-day moving average. It's almost a cliche spot to halt a rally but here we are -- the techs worked.
In the big picture, the market is increasingly worried about Europe and China dragging down the rest of the world. China's second rate cut in a week is looking a bit like a panic mood. In Europe, I don't think leaders yet grasp the scope of the energy crisis they're facing and that -- short of capitulation to Russia -- the solutions are years away.
In the US, the recent rebound reflected a better consumer than feared six weeks ago but that's priced in now. Looking ahead, natural gas prices will also be a drag in the US. They're up 4x from this time last year and hit a new high today. That will flow into power pricing as well.
