UBS states US stock sell-off not tied to economic risks

On Monday, US stocks fell sharply, with the Nasdaq down 4% and the S&P 500 dropping over 2.7%. This decline was driven by the unwinding of positions in tech and momentum stocks, not by increased economic risks. Major tech companies like Nvidia, Tesla, and Apple saw significant losses. Nvidia lost about 5%, Tesla dropped 15%, and Apple fell nearly 5%. Despite the downturn, other market segments remained stable, indicating the sell-off was not due to a fundamental economic crisis. UBS reported that while the S&P 500 experienced dramatic swings, other indices showed more stability. Concerns over consumer confidence, economic indicators, and potential government issues are contributing to investor uncertainty.