The most recent sell-off is coming from a massive tank in Asia, particularly in Shanghai. It is effectively an unavoidable slowdown in China that the market worries will turn into a recession for the world’s largest nation that has been the world’s growth engine.
Here is how the Shanghai reaction looked in ETF terms, beyond ugly.
The 10-year Treasury yield was 1.97%, versus 2.05% on Friday. That was 2.08% on Thursday, 2.13% on Wednesday and 2.20% on Tuesday. The 30-year Treasury yield was 2.68% Monday morning, down from 2.75% on Friday and down from 2.86% last Tuesday. The 30-year was even north of 3% as recently as July 22.
S&P 500 futures were down 85 points and the DJIA futures were down close to 700 points.
iShares 20+ Year Treasury Bond (NYSEMKT: TLT) was indicated to open up 0.75% at $127.35, against a 52-week range of $112.73 to $138.50.
The SPDR S&P 500 ETF (NYSEMKT: SPY) was indicated down 4% to $189.66, versus a 52-week range of $181.92 to $213.78.
The SPDR Dow Jones Industrial Average ETF (NYSEMKT: DIA) was down 4.1% at $157.60, against a 52-week range of $158.27 to $183.35.
The PowerShares QQQ Trust (NASDAQ: QQQ) was indicated down 5.3% at $96.94, against a 52-week range of $90.24 to $114.39.
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