Profit-taking, economic worries or options trading? Sudden sell-off confounds analysts

The recent stock market sell-off continued in the Asia-Pacific region and Europe, following the worst daily losses for the S&P 500 since September. The sell-off came after a nine-day bull run, with some suggesting that it was a result of investors taking profits. Others mentioned a high volume of zero-day options trading as a possible cause. The sell-off was also attributed to a disappointing revenue outlook from delivery company FedEx. Market experts emphasized the growing confidence in the likelihood of rate cuts by the U.S. Federal Reserve in 2024. The stock market decline is seen as a correction after a period of gains.