Wall Street devalues and materializes its worst session of the year, with sell-offs on a broad front. The sell-offs hit hard the 'magnificent 7' and semiconductors, which have been the driving forces since the end of October 2023.

The S&P500 fell -2.3% to 5,427 (the first drop of this magnitude in 500 sessions) and the Nasdaq composite -3.65% to 17.342... the worst tech session since mid-December 2022 (and the Russell-2000 was not spared with -2.15%).

The Nasdaq was weighed down by Tesla's -12.3% plunge... which dragged Lucid (-6.5%) in its wake. The SOXX semiconductor index plummets -5.3% in the wake of Broadcom (-7.5%), Nvidia (-6.8%), AMD (-6.1%), Applied Materials (-6%)...

On the "GAFAM" side, Meta plunged -5.6%, Alphabet, whose quarterly results were "not totally convincing", dropped -5% (it slightly exceeded estimates, but the prospect of increased capital expenditure is upsetting Wall Street), Microsoft fell -3.5%, Apple -3%.

Even more surprisingly, the sudden wave of risk-offs did not even cause US yields to ease; in fact, the opposite was true, with the 10-year yield rising by +5 basis points to 4.285%.

On the statistics front, the US composite purchasing managers' index (PMI) came in at 55 in July, compared with 54.8 in June. The services PMI rose from 55.3 to 56, but the manufacturing PMI contracted from 51.6 to 49.5.

In addition, new home sales in the US contracted by a further 0.6% in June, after plunging 14.9% in May, to 617,000 annualized and seasonally adjusted.

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