Hey Traders,

Well, this is a real kick in the teeth.

Just as we were getting ready to wind down for the holidays, Powell had to go and throw a wrench into the works.

Here's a breakdown of the carnage:

• Dow Jones Industrial Average (DJIA): Down a whopping 2.6% (1,123 points) to close at 42,326. This makes it the Dow's worst day in almost a year. Big blue-chip Amazon (AMZN) took the biggest hit, dropping a staggering 4.6%.
  
  
• S&P 500: This broad market index also suffered, tumbling 2.9% (178 points) to finish the day at 5,872. Paycom (PAYC) was the biggest loser within the S&P, plummeting a brutal 10%.
  
  
• Nasdaq 100: Tech stocks, particularly sensitive to interest rate fluctuations, got hammered even harder. The Nasdaq 100 sank 3.6% to close at 21,209. Tesla (TSLA) led the tech tumble, dropping a painful 8.1%.

The pain didn't stop there. Every member of the prestigious "Magnificent Seven" tech companies (think Apple, Microsoft, Alphabet etc.) ended the day in the red, collectively wiping out over $600 billion in market value.

Small Caps Crushed

Small companies, often considered a riskier investment, weren't spared either. The Russell 2000, an index tracking smaller companies, plummeted a gut-wrenching 4.7%, completely erasing any gains made since the last election.

Selling Spree Across Sectors

There was nowhere to hide! Every major U.S. equity sector closed in the red. Consumer Discretionary stocks, which include things like retail and entertainment, were hit the hardest, dropping a hefty 4.5%. Real Estate followed closely behind, down 4%, as rising interest rates put pressure on growth-oriented industries.

Tech Takes a Beating:

Technology, the usual market leader, fell 3.2%. Chipmakers and software companies felt the brunt of the selloff, reflecting investor anxiety about rising interest rates. Even traditionally safe havens like Utilities and Consumer Staples couldn't escape the red, dropping 2.4% and 1.5% respectively.

Dollar Dominates:

The only winner in this market meltdown? The U.S. dollar. The dollar index (DXY) surged 1.2%, reaching a two-year high. This rally came at the expense of gold and Bitcoin, which both fell as investors flocked to the safety of the dollar. Gold dropped 2.1%, while Bitcoin took a sharper 5.5% dive.

Powell Pours Cold Water on Bitcoin Dreams:

Adding insult to injury, Fed Chair Jerome Powell firmly shut down any hopes of the U.S. government holding Bitcoin reserves. He cited legal and structural limitations, emphasizing that the Federal Reserve isn't allowed to own such assets.