US stocks (^DJI, ^IXIC, ^GSPC) underwent a three-day sell-off as investors grappled with recession concerns. Stuart Kaiser, Citi's head of US equity trading strategy joins Morning Brief to discuss current market dynamics.

Kaiser identifies two key factors affecting markets: July's jobs report, which he believes the market "overreacted" to and the unraveling of the yen carry trade. He notes that the impact of economic data on markets will be "ongoing" as investors assess the likelihood of a soft or hard landing for the US economy.

"The fact is we're in a period of slowing US economic growth," Kaiser told Yahoo Finance.

He suggests that the recent volatility gave investors a chance to buy into their "favored stocks" rather than an opportunity to take on risk. "When people get a little bit confused or a little bit uncertain, they tend to pull back on risk appetite, and I think that's what happened," he explains.

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This post was written by Angel Smith