Sou Hu Cai Jing·2025-11-18 12:07Market Sentiment - The fear index has sharply risen from "panic" to "extreme panic," indicating heightened investor anxiety and uncertainty in the global financial markets [2] - This extreme panic signal reflects significant emotional volatility among market participants, leading to increased demand for safe assets like government bonds and gold [2] Nasdaq Composite Index - The number of Nasdaq Composite Index constituents hitting 52-week lows continues to exceed those reaching new highs, signaling overall weakness in the tech sector [5] - This trend suggests a broadening bearish sentiment across the market, not limited to a few stocks, indicating a potential risk-off environment due to concerns over interest rates, inflation, and economic slowdown [5][6] S&P 500 Index - The S&P 500 Index has broken below its 50-day moving average after maintaining it for 138 consecutive trading days, marking a significant shift in market momentum [9] - This broad-based decline indicates overwhelming selling pressure and a shift from a low-volatility to a high-volatility environment, as investors seek to hedge against upcoming high-risk events [9] Gold Market - Despite a general shift towards risk aversion, gold has not seen the expected price increase and has instead declined, driven by speculation regarding the Federal Reserve's future interest rate path [12] - The market's reaction to the potential for a more dovish stance from the Fed has diminished gold's appeal as a traditional safe-haven asset [12] Market Correction - The recent market correction has resulted in a massive liquidation across various asset classes, with the U.S. dollar strengthening as a result of panic selling and risk-off behavior [14] - This liquidation reflects the fragility of market sentiment and its sensitivity to macroeconomic signals, impacting stocks, bonds, commodities, and cryptocurrencies alike [14] Nvidia Earnings Report - Nvidia's upcoming earnings report is viewed as a critical event for the AI market and overall risk assets, with analysts expecting Q3 revenue of approximately $55 billion [20][21] - The high market expectations create a "no room for error" scenario, where merely meeting projections could trigger a sell-off, emphasizing the need for Nvidia to significantly exceed expectations to sustain upward momentum [21] Federal Reserve Communications - The sentiment index regarding Federal Reserve officials' comments is currently at one of its most hawkish levels in the past month, indicating a shift towards a more restrictive policy outlook [19] - The upcoming FOMC meeting minutes are anticipated to reveal internal divisions regarding future interest rate paths, which could significantly impact market sentiment [22][24]