1: Is the market getting more sensitive to earnings misses?
When earnings announcements don’t meet analyst expectations the value of company’s shares declines. However, when those expectations are increasingly unrealistic selloffs can become acute. The gap between reality and expectations tends to be widest when euphoria has replaced sound analysis.
2: Risk off!
Along with mega-cap tech, small cap ventures are getting destroyed right now.
3: Inflation expectations may have peaked
First it was transitory, then it was baked into expectations. The new surprise might be that inflation actually starts to decline and interest rates don’t need to rise as much as predicted.