US stocks escape global decline but "still very vulnerable"

Stocks were mostly down on Wednesday although the US escaped unscathed.

The Nikkei 225 tumbled 1.6 percent and the STOXX Europe 600 fell 1 percent.

However, the S&P 500 edged up 0.1 percent.

Still, investors remained cautious.

“There’s very little reason to come in and buy risk with both hands,” said John Brady, managing director at futures brokerage RJ O’Brien.

Indeed, Marc Faber, who told CNBC in January that most stocks would drop between 20 and 40 percent, told CNBC again on Wednesday that stocks are “still very vulnerable”.