Stocks copping a pasting in the US, with the S&P 500 experiencing two sharply down days.
The Dow Jones has lost more than 400 points in two trades, and the NASDAQ is being clobbered.
It's worth noting here that the selloff has not been triggered by weak economic data
Rather simply that certain stocks in the US have become too expensive as I noted here (not a bad call by the way, just quietly, since US stocks have crumbled since I wrote that!).
The technology stock focused NASDAQ has been trading at 35 times earnings, which is far too much for any rational investors to pay for a company, so little wonder that it's shed almost 4.5% in just a couple of sessions.
By way of comparison, the S&P 500 has been trading at only around half that level of average valuation.
Bloomberg summarises, replete with requisite meaningless quote from a trader:
"U.S. stocks sank, extending the Standard & Poor’s 500 Index’s worst two-day drop since June, amid disappointing results at JP Morgan Chase & Co. and signs hedge funds were dumping the bull market’s best performers.