Is anyone surprised? By the end of the week beginning Monday 5 February, the US S&P 500 index had fallen by 10% from its record high on 26 January and market conditions remained volatile.

Investors have been anticipating a correction in equity markets for at least a year. Market volatility as measured by the VIX index was below 11 for most of 2017. The 6% rally in large-cap US equities from the beginning of 2018 had always seemed excessive, particularly as it followed on what had been excellent returns over the preceding 12 months.

Read more of our expert’s analysis of the reasons for the recent equity correction – and the key factors that are likely to influence US equity performance over the rest of this year.