Wall Street was hit hard on Wednesday 10 October in the wake of a recent IMF warning on global growth and rising concerns over U.S. government bond yields. No sector was spared. The sell-off was first exacerbated by high-growth names starting with FAANG stocks which saw more than $600 billion of market value wiped out from their recent peak. However technology suffered less than a number of industry groupings. The S&P500 Information Technology index eventually beat the broad-based index (-3.8 percent vs. -4.1 percent). Utilities and consumer staples were the best performers (-1.26 and -1.94 percent respectively) while many others took a nose dive such as materials (-6.6 percent), industrials (-6.4 percent), financials (-5.6 percent) and energy (-5.4 percent) as oil prices fell sharply (WTI oil down -4 percent) owing to reduced appetite for risk and growing fears on demand. Last but not least, it should also be noted that luxury stocks in Europe were victims of investors’ worries over a crackdown at Chinese borders on undeclared imports.
Though Treasuries offered a downside risk protection (the US 10-year Government Bond yield decreasing from 3.23 percent to 3.16 percent), there was no massive flight to quality.
Find the full report here : https://www.trackinsight.com/weekly-flow-report/2018-10-12/global