The market is continuing to experience turmoil as the CDX high yield index trades down 8 cents and investment grade spreads widen by 0.30 basis points. This development comes as investors grapple with an onslaught of unfavorable headlines, despite the remarkable technical performance in risk this January.

The deterioration in market sentiment is evident across the curve, with US Treasurys trading worse by 1-5 basis points. Equity futures are also under pressure, led by Mega Caps, which are typically seen as a bellwether for the broader market.

The lack of economic data on Monday for the US has added to the uncertainty, with investors awaiting comments from Fed speakers on the tape. The central bank’s stance on interest rates and monetary policy is likely to remain a key driver of market sentiment in the near term.

While the recent sell-off may be seen as a correction after a period of exuberance, it highlights the importance of maintaining a cautious approach to risk-taking in the current environment. As always, investors are advised to stay vigilant and adapt their strategies accordingly to ensure continued success in the market.