Markets

Buy now or stay clear? Here's what analysts are saying about the US sell-off

Key Points
  • Asian markets took a tumble following the nearly 1,200-point plunge on the Dow Jones industrial average on Monday.
  • Some market watchers said the recent declines stateside could just be a pullback.
'This is a dip,' time to buy
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'This is a dip,' time to buy

Asian markets took a tumble following the nearly 1,200-point plunge on the Dow Jones industrial average on Monday, but some market watchers said the moves were just a pullback — not a cause for greater concern.

There was no obvious single reason behind the Dow's Monday declines, which took the 30-stock index below the 25,000 mark, although those falls came on the back of jitters over rising interest rates on Friday. Those declines extended into the Asian trading session, with major indexes recording significant losses on the day.

Still, some investors were optimistic that recent declines would resemble a short-lived correction.

"This was clearly a stock market phenomenon, that has become disconnected from the economy and the macro-environment," Jeffrey Kleintop, chief global investment strategist at Charles Schwab told CNBC's "Squawk Box" on Tuesday.

"What we know so far is that clearly, in the volatility markets, there's been a disconnect, there was an imbalance of orders and that seems to have led to this spiraling down of markets. That doesn't mean it's over yet, but these things do tend to correct themselves fairly quickly," he said, adding that recent declines were "just going" to be a pullback.

Suresh Tantia, an investment strategist at Credit Suisse, said the sell-off overnight stateside was driven by algorithms and program selling, highlighting how economic data has remained strong.

"In the next few days, we could see a bit more selling, but this would be a great buying opportunity because nothing has changed fundamentally," Tantia added.

Risk systems kicked in as the market fell
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Risk systems kicked in as the market fell

Others sounded more prudent, warning of volatility ahead.

"I actually think there's still too much complacency," Tim Seymour, CIO of Triogem Asset Management, told CNBC's "Squawk Box."

"I think that there's a lot of people that think 'I can buy this dip and everything's going to be fine' and certainly for their sake, I hope it will be. I do think that we have some choppiness before we can put in that bounce," he added.