SPX: S&P 500 Futures Dive After the Big Three Indices Settled at Record Highs. Crypto Sells Off.

Cryptocurrencies were in even bigger trouble with Bitcoin losing 3%, Ethereum crashing nearly 10% in a few hours.

👀 S&P 500 Futures Dip 0.3%

• Futures contracts tied to the S&P 500 (SPX) were floating under the flatline Monday morning as traders were struggling to contain a sharp reversal from last week’s bright times.
• S&P 500 futures were showing a loss of 0.3% ahead of the bell. Futures on the Nasdaq Composite IXIC were lower by 0.4% as were futures on the Dow Jones Industrial Average DJI.
• On Friday, all three major stock indexes notched record highs – for the second straight day. A rare show of bullish sync across stocks from just about every corner of the market.

💸 Stock Pullback

• Why the drop then if things were going so well? A look across the board this morning showed that traders and investors were feeling risk-off’ish. Tech stocks were getting bruised the most with just about every Magnificent Seven member sliding.
• The drop is coming on the heels of a very strong week for equities. One where the Federal Reserve finally delivered a cut to interest rates – the first one in nine months – and projected two more by year end.
• Stocks soared on the news with the broad-based S&P 500 adding 1.2% on the week. The 30-stock Dow Jones climbed 1% and the more risk-tilted, tech-loaded Nasdaq Composite jumped 2.2%, fueled by AI plays (of course).

🔥 Crypto Selloff

• Another corner of the market was in even more pain this morning. Crypto was getting battered out there with Bitcoin prices BTCUSD sliding $3,000, or 2.5%, to $112,000 from $115,000 per coin.
• A Bloomberg report estimated that the morning slide washed out $1.5 billion in bullish wagers, liquidating more than 400,000 traders (not a great start of the week for some bulls).
• Ether ETHUSD crashed nearly 10% in a few hours, dragging the price to $4,000. Brave buyers stepped in to catch the falling prices, supporting a modest rebound to $4,200. But is the selloff contained? Remains to be seen.