Three things could cause a 'second wave' in the market sell-off

The combination of mounting recession fears, bets on a more cautious Fed and a regular uptick in market volatility could spell more losses, writes Nomura. "Investors should be focused on the potential downside for global equities in the near term, given that sentiment is still pointing down," writes Masanari Takada. Investors have pointed to trade angst for a 1% decline in the Dow Jones Industrial Average and a 1.3% fall in the S&P 500 this week.