The big news last week was the Nasdaq dropping 4% on Friday, taking us back to where we were a month ago (we are down another 3% today as of writing). The market appears to be reassessing the likely interest rate path for the Fed. Last Friday’s strong labor market print (non farm payrolls) caused US 2y yields to sell off.

This negative shock in bond yields led to a sell off in momentum stocks. In general, tightening global monetary policy tends to hurt higher beta stocks relative to lower