The stock market sell-off is about more than weak economic data

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Ed Yardeni News

Bank Of Japan,Japan,CBOE Volatility Index

The latest leg of the sell-off accelerated overnight as Japan's Nikkei 225 dropped more than 12% in its biggest-ever daily loss after a surprise interest...

^DJI) was hovering near 3.83%, down roughly 50 basis points in less than two weeks. Volatility has spiked, too, The CBOE Volatility Index, known by its ticker as simply the VIX dropped more than 12% in its biggest-ever daily loss after a surprise interest rate hike from the Bank of Japan. Yardeni Research president Ed Yardeni told Yahoo Finance he thinks the "large extent" of the sell-off in US stocks is attributable to the moves in Japan.

"I don't necessarily buy the fact that the market is voting that the economy is just weakening outright overnight," Charles Schwab senior investment strategist Kevin Gordon told Yahoo Finance. "I think it takes a little bit longer for us to get a sense of that." To Gordon, the recent market reaction to the jobs report was in sync with sentiment shown by investors following Big Tech earnings. In both cases expectations were likely too upbeat compared to the actual data.

"This is kind of what you get when markets have a really aggressive run with not a lot of volatility," Pettit said. "Everyone kind of gets on very similar trades. Everyone gets pulled up at the same time." Stocks tanked Monday on Wall Street's concerns about the health of the US economy and a surprise interest rate hike from the Bank of Japan. Multiple fights break out at Giants, Lions joint training camp; QB Daniel Jones pulled out of frayU.S. Defense Secretary Lloyd Austin was caught by surprise by a defense official's decision to agree to plea deals with the man accused of masterminding the Sept.

 

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