New Delhi, March 11 -- The sell-off in the US stocks is not necessarily a signal that US economic risks have escalated significantly, but it has been because of the unwinding of extended positions in momentum and tech stocks, according to a report by UBS.

In the American markets on Monday, the Nasdaq index tanked 4 per cent, while the S&P 500 also closed more than 2.7 per cent lower, causing stock markets around the globe to trade in the red. The market participants saw S&P 500 losing over USD 4 trillion market valuation.

"The sell-off has been exacerbated by the unwinding of extended positioning in certain market segments such as momentum and tech stocks and is not necessarily a signal that US economic risks have escalated significantl...