If the bank collapse in Paraguay hadn’t happened today, and stocks hadn’t initially risen yesterday, I’d tend to agree with you. This is odd enough to potentially have a better explanation than everyone got happy and then sad all of a sudden.
Paraguayan banks don't mean a whole lot in the global financial markets.
Paraguayan banks with close ties to a politician with, in turn, ties to the Trump family absolutely hint at money moving around.
The fall of the bank didn't cause Nasdaq to fall. But the opposite direction, or both events having a common cause? Entirely possible.
I thought the bank collapsed on Monday? And it was only like a 3 billion dollar bank? So note huge.
Read enough of these “explanations” of what the market did and a portrait emerges of extreme emotional volatility combined with a fantastic imagination. The market is insanely happy because x went up, which means the Fed will do y, and so pork belly futures will do z. Oh no! Now it is sad! But for the same reason?
For the same reason, spot FX commentary is utter garbage, yet there seems to be unlimited amounts of it.
Wall Street banks avoided becoming a political talking point with that action yesterday.