I’ve been warning for a week about poor September seasonals and here they are. It’s the worst month for stocks, oil and gold. All three of the trio are down today and some in a big way.
Perhaps most-worrying is the drop in shares of Nvidia, which are down 8% with little in the way of support down to $90/$100.
NVDA daily
The market is signalling trouble in global growth and that’s understandable as high rates bite. There will be some kicking and screaming as the market pines for a 50 basis point cut from the Fed.
Non-farm payrolls on Friday will be key but an early indication could come on Wednesday with the Bank of Canada meeting. BOC Governor Tiff Macklem was at Jackson Hole with Powell and if he’s more-aggressive it would signal that’s the way the wind is blowing.
As for FX, we’re seeing a classic flight to safety as the yen rallies and the antipodeans are beaten up.
