A global market sell-off is likely to continue in the days ahead after “pure market panic” last week, Rabobank strategists said on Monday.
Following weaker than forecast US jobs data on Friday, rates markets are pricing in an aggressive 0.5 percentage points in cuts from the Federal Reserve at multiple meetings this year.
US tech stocks have been at the forefront of the sell-off, plunging from all-time highs hit only weeks ago.
“Few in markets or financial media had much bad to say when that bubble was blowing, but when things flip, they demand rate cuts,” said Michael Every, Rabobank’s chief global strategist.
For some investors, it is “heads I win, tails I don’t lose”, he added.