No emergency cut from the Fed likely- Nasdaq 100 in focus

As the global stock markets tumbled in only a matter of a few days, US yields fell abruptly and that led a flood of analyst calls for the Fed to cut rates in September. Granted that is also due to clear evidence of a slow down in the US economy unfolding right now. The calls for the Fed to cut more aggressively in September and beyond grew louder as stocks crumbled and many called for an emergency Fed cut, but quite honesty that would have signalled panic from the FOMC. The Fed boss has already signalled his willingness to cut next month, but anything beyond that would seem unlikely and for good reason. Whilst stocks have started to unwind, albeit aggressively, we have to remember where we are in price terms over the past 5 years- still near the top of what has been a record run and extreme valuation levels, by any measure. Remember too; nothing goes up forever and that lesson has been delivered in recent days and there was simply too much complacency in the markets. The tech sector which led this has now suffered a correction and we have seen that in the price action on the Nasdaq 100. The index did close higher yesterday and rebounded from a low at 17,858, to close 182 points higher at 18,077. Question then- is the correction over now? Some think it is, but until the volatility dies down that is far from certain