Welcome back to The Breakdown with me, NLW.

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What's going on, guys? It is Thursday, July 25th, and today we are talking a big stock route yesterday.

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Slash breakdown pod. Hello, friends. Today, we are taking a break from our Bitcoin politics,

crypto politics conversations to go to the macro side, where the markets had a rough day yesterday.

In fact, it was their worst day since 2022, as fears of a growth slowdown set in.

The S&P 500 was down by 2.3%, but the real pain was in the NASDAQ, which fell by 3.6%.

The tech-heavy index is more than two weeks into a correction, which has seen a 7% drawdown

from all-time highs. Yesterday's move was the sharpest so far, with more than a trillion

dollars in market cap wiped off in a single day. In terms of nominal value, this was the third

worst day in the history of the index. Analysts are viewing this as a confirmation of a trend

change after a historic hot streak for U.S. stocks. The S&P 500 had lasted almost a year without a 2%

daily loss, the longest streak since 2008.

Jay Woods, chief global strategist at Freedom Capital Market said,

All good things must come to an end, but this isn't the end of the world for the U.S. stock market.

The rotation trade into small caps and value is still on,

with volatility picking up as weak seasonal factors come into play ahead of U.S. election season.

End quote. The volatility index has reached its highest mark since April. Small caps have been putting together a nice run recently with the Russell 2000 Small Cap index up more than 8%

over the past three weeks. That move was largely driven by a large narrative boost in early July,

...