Sell-off in US stocks is not a signal that US economic risks have escalated: UBS
In the American markets on Monday, the Nasdaq index tanked 4 per cent, while the S&P 500 also closed more than 2.7 per cent lower, causing stock markets around the globe to trade in the red. The market participants saw S&P 500 losing over USD 4 trillion market valuation.
«The sell-off has been exacerbated by the unwinding of extended positioning in certain market segments such as momentum and tech stocks and is not necessarily a signal that US economic risks have escalated significantly.» says the report.
The tech-dominated Nasdaq composite index witnessed a 4 per cent fall, showing investors' sentiment. In the major losers, the AI fab company Nvidia lost about 5 per cent or USD 140 billion in a single day, while the stocks of Tesla declined about 15 per cent, and Apple plunged 4.85 per cent.
Among the other major tech giants, Meta, which owns popular social media platforms such as Facebook, Instagram, and WhatsApp, lost USD 10 billion, down 4.42 per cent.
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