Key S&P levels in the sell-off, echoes of June, stay-at-home strength

Medical personnel work inside a field hospital known as an Alternate Care Facility at the state fair ground as cases of coronavirus disease (COVID-19) cases spike in the state near Milwaukee, Wisconsin, U.S., October 12, 2020.

Wisconsin Department of Administration | via Reuters

This is the daily notebook of Mike Santoli, CNBC’s senior markets commentator, with ideas about trends, stocks and market statistics.

(This story is for CNBC Pro subscribers only.)

  • Covid surge is definitely the most apparent pressure point on markets today – “go out and play” stocks hardest-hit, etc. But plenty of other tidy excuses: growth stall, new-home sales miss, rebuilding a margin of doubt about the election and just a needed/ongoing reset of investor positioning/expectations toward a more neutral spot.
  • Some echoes of what we saw in June? A previous strong run higher in Treasury yields, value stocks, “reopening” enthusiasm peaked on June 8. Many thought the cyclical turn was in, “reflation trades” should shine. Then we saw the Sunbelt surge, prompted a market gut check followed by 2-3 months of stay-at-home growth-stock dominance.

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