Two months of slow gains in the US stock market wiped out in one trading session. Not only that: down volume was a heavily lopsided 97%.
Just as unusual was that stocks and bond prices both declined together (see chart below).
The US dollar rallied a touch, as is normal in risk-off days, with the AUD being the biggest loser.
Analysts were unable to come up with a convincing reason to justify today’s selling deluge which continued in the after-market.
Will September end up following the historical pattern shown in the chart below ?