Katie Stockton warns three signs could deepen stock selloff

Fairlead Strategies founder Katie Stockton identifies three warning signs that could deepen the current stock selloff: support breaking across many individual stocks, wider credit spreads, and a decisive breakout in the Cboe Volatility Index (VIX). She notes support remains intact and suspects last Friday marked a short-term low for chips, but calls the setup fragile. The Philadelphia Semiconductor Index (SOX) fell 11.4% last week in a chip rout unmatched since April 2025, with BTIG saying the slide could last into 2027. CoreWeave's credit stress, with debt yields jumping to 14.8% after a stock drop, and Alphabet, Amazon, Meta and Oracle selling over $228 billion in bonds, are cited as live credit tests. Stockton also expects the 10-year Treasury yield to stall near 5.25% before resuming higher.