The volatility on the index level is at a historical level, with the Nasdaq experiencing an intraday fluctuation of over 4.5%, the S&P 500 index with an intraday fluctuation of over 5.5%, and the VIX index with an intraday fluctuation of over 35%.

In the absence of external black swan events (such as a pandemic), the index has opened high and then declined, with such a high intraday volatility; in the history of the US stock market, this has only happened once before, on April 8. Investors in the US stock market during Trump's term have been fortunate, witnessing two historical market events in one year.

What happened in the market? Based on the information from the current mainstream foreign exchange trading platforms, the main reasons can be summarized as a few.

Morgan Stanley issued a report during U.S. stock trading, believing that the Fed will not cut interest rates in December. The timing of the report coincided with the S&P 500 index peaking and reversing, falling 1.5% in one hour. This report appeared just as the market was optimistic about the favorable sentiment for a rate cut based on the September data.

Secondly, Federal Reserve official Cook, the same Cook involved in the mortgage extortion, subsequently warned that the market could decline due to private credit potentially triggering stability issues in the financial system. At this point, the decline is smoother.

The third is that the smooth decline triggered the CTA selling points, combined with the positions of some profit-taking, which together created this historically second-level roller coaster.

A positive signal is that this time the large amplitude fluctuations in the intraday market are not caused by a single independent event, such as the pandemic or tariff liberation day, which are caused by independent macro events.

This time, it is driven by the pessimistic report of major banks cutting interest rates, warnings from Federal Reserve officials regarding private credit, and the cascading effects caused by CTA passive selling positions combined with profit-taking exits. Overall, tracking the market structure since last night, it remains relatively stable.

The latest view from the New York trading desk in the morning session indicates that: from the flow structure of funds in the morning, the trading volume has surged to more than 2.5 times the usual level in the past hour, showing no signs of panic. The market structure does not reflect large-scale leverage reduction, but rather seems to be clearing macro-level resistance.

Finally, to mention the interpretation of the short-term follow-up market, the current VIX is around 28, and there has been a large amount of capital shorting volatility in the morning session, indicating that the sentiment is stabilizing.

Combining this with the historical market trends of the S&P 500 index when its intraday volatility exceeds 3%, the average performance of the S&P 500 index afterwards is an average rebound of 2% the next day, an average weekly increase of 2.65%, and an average monthly increase of 4.7%.

You see, after pessimism comes optimism, there's nothing to be panicked about, right?