WHO’s Tedros says the global pandemic could get “worse and worse and worse” but big-tech stocks keep going “higher and higher and higher”… until Dallas Fed’s Kaplan pooped in the punchbowl and virus news from California didn’t help…

This was Nasdaq’s worst day since 6/26 and a major 4%-plus reversal intraday

For a brief few minutes, the S&P 500 got back into the green for the year (above 3230.78)…

Source: Bloomberg

But could not hold it…

The early Short-Squeeze evaporated…

Source: Bloomberg

Beware…

AMZN lost $120 billion in market cap today from top to bottom…

And then there’s TSLA which soared out of the gate to almost $1800 before tumbling back to try and cling to unchanged…

Cyclicals were bid early on but ended lower along with Defensives…

Source: Bloomberg

And today saw a massive reversal in MTUM…

And Value soared…

Source: Bloomberg

VIX soared back above 32 – its highest since June…

China continues to power higher despite officials warning “investors” over excess speculation (after they encouraged them to get in). ChiNext – the small-cap, tech-heavy index – is up 22% in July, but the last week has seen the big-tech indices flat as tech takes off…

Source: Bloomberg

Treasury yields ended the day lower (after rising into the cash equity open)…

Source: Bloomberg

But bonds never played along with the early exuberance in stocks…

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Source: Bloomberg

The dollar index spiked back into the green as stocks began to dive…

Source: Bloomberg

EM FX tumbled as the selling began (led by BRL and MXN)…

Source: Bloomberg

Cryptos tumbled with the equity weakness…

Source: Bloomberg

Despite the dollar gains, copper and PMs managed to hold gains but oil ended lower…

Source: Bloomberg

Finally, Bloomberg’s Richard Breslow summed up the farcical, fantasy world of dissonance in which we are living rather well today:

It does seem a tad mean-spirited to see all of this equity green, oodles of stories talking about optimism over global growth, and just not feel all warm and fuzzy. I wonder if it is on purpose or subconscious that for all the upbeat verbiage there is a noticeable dearth of the words “risk-on” in market commentaries. Somehow that strikes me as oddly appropriate.

Probably, a better term for today’s price action would be “Fed-up,” because we should accept the fact that we are here for only one reason. The global economy has certainly bounced off the lows.

But it’s hard to express optimism when it’s taken for granted that it can’t, by any measure, be expected to thrive without continuing life support.

Nothing else matters…

Source: Bloomberg

We do note, however, since The Fed balance sheet flattened, the market has largely gone sideways as the prediction markets price in a Democrat sweep of White House, Congress, & Senate…

Source: Bloomberg

Via Zerohedge