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The Nasdaq has reached extreme 'oversold' levels with only 16% of the index's stocks now above their 200-day moving average. The last time this indicator was this oversold was in the midst of the Covid-19 panic in March 2020, the Fed policy mistake scare in December 2018, and during the 2008 selloff. The indicator is not a sign that markets will bottom at current levels, but it suggests stocks have suffered a rapid de-rating in valuation multiples, together with many investors reducing positions. Selling exhaustion could follow, but stocks have suffered severe 'technical' damage. Looking at the relative strength indicator (30-day RSI) it seats below the March 2020 and December 2018 selloff. Investors are worried that growth should dramatically slow amid tighter monetary conditions, the war in Ukraine, and China's lockdowns further deteriorating the outlook. However, given the recent warnings from corporate on worsening conditions and rising costs, traders are quickly cutting fed rate-hike bets. It may be too soon to tell, but growth still appears resilient, despite what headlines could suggest. 

Snap sparked macro concern over the state of the economy, sending Nasdaq futures down more than 1.5%. Snap CEO Evan Spiegel said the social media app will miss its own targets for revenue and earnings in the current quarter and will look to manage expenses and slow hiring. Spiegel warned the macro environment is deteriorating further and faster than anticipated in last month's guidance. Snap shares plunged 30% in after-hours. 

Equity futures moved higher after US President Biden said he will discuss with Treasury Secretary Janet Yellen about removing some of the tariffs on Chinese imports. Stocks have been volatile as investors are anxious about the uncertainty of the impact of China's Covid policies on growth and the state of corporate margins given the disappointing earnings from Walmart and Target last week.

Investors have continued to wrestle with worries about an economic downturn this year, as the Federal Reserve raises interest rates to combat inflation. Global equities are on track for their seventh consecutive week of falls, in part because of these concerns.

Richemont shares are trading 12% lower, to a 1-year low as it reported after it warns on Chinese demand, a market that has boosted demand for luxury goods. About 40% of Richemont's stores in China are currently closed, as Covid infections have led to lockdown measures. The Cartier-owner also said the suspension of its business in Russia knocked EUR168 million off of profit. Nonetheless, the company ended the quarter with EUR5.3 billion in cash and announced a special dividend.