The Stock market is collapsing today – Finance PhD Dr Boyce Watkins explains

Stocks fell sharply on Tuesday to start the week as technology shares were under pressure following their worst sell-off in more than five months last week.

The Nasdaq Composite dropped 3.6% and the Dow Jones Industrial Average plunged 511 points, or more than 1.8%. The S&P 500 slid 2.3%.

“High valuations in the mega-cap stocks are stretched far beyond historical levels,” said Bruce Bittles, chief investment strategist at Baird. “The technical indicators – high margin debt, fully invested mutual funds, CBOE options data showing record call volume, Wall Street letter writers at bullish levels — pointed to excessive optimism in the market which often suggests a consolidation/correction phase is likely.”

Tesla is among the leaders in the decline, along with many tech stocks.

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