Nasdaq Fall: Liquidity Fears, Not Just Tech, Driving Market Selloff, Says Economist William Lee

• Economist William Lee attributes the Nasdaq's 6% fall to anxiety over a hawkish US Federal Reserve ending easy liquidity.
• The selloff began in big tech and AI, areas that saw heavy buying, fueled by concerns over Microsoft's capital spending.
• Lee emphasizes that the deeper fear is policy-driven, specifically the potential appointment of Kevin Warsh as Fed chair, signaling an end to plentiful liquidity.
• Markets are grappling with reduced liquidity and a smaller Fed balance sheet, rather than just stretched valuations, according to Lee.
• Lee notes that global investors remain unconvinced by India's positive signals, expressing skepticism about market openness and energy diversification.