Nasdaq 30% off record

Volatility in the financial markets continues to be exceedingly high. Investors are struggling to make sense of all of the central bank rate rises and quantitative tightening, while troubling signals of recession appear every day, exacerbating inflation concerns. As a consequence, they've been selling off all kinds of risky assets in favor of the dollar. European indexes recovered off their lows, boosting US futures and cryptos off their lowest levels, indicating some opportunistic dip buying.

Volatility was prevalent. As the greenback surged to a new multi-decade high versus a basket of other currencies, the Swiss franc reached parity with the US dollar for the first time since 2019. Furthermore, the Nasdaq rebounded from its lowest levels after extending its loss from its all-time high to more than 30%, which was larger than even the March-2020-covid peak percentage fall. Cryptos fell once more, as WTI touched $107. On a micro level, trade in GameStop was suspended after the stock jumped 16 percent throughout the day.

On a macro level, the UK economy showed signs of weakness early this year, with GDP, manufacturing, and industrial output all falling short of expectations, raising worries of a recession.

It's tough to manage the markets at times like these, and traders are willing to grab rapid gains, which is why equities have failed to rebound. However, since the Nasdaq is currently 30% below its all-time highs, there remains a prospect for a bear market bounce, particularly because rates have fallen somewhat in recent trading. But, whatever recovery we get, keep in mind that we're now in a bear market, and rallies are sold into more often than declines are purchased.