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STORY: :: Lisa Bernhard, Reuters

:: Kevin Nicholson, Global Fixed Income Chief Investment Officer, Riverfront Investment Group

Major U.S. stock indexes fell sharply on Monday, with the Nasdaq down more than 3%, as U.S. recession worries shook global markets and drove investors out of risky assets.

The recession worries followed weak economic data last week, including Friday's U.S. payrolls report.

Speaking with Reuters' Lisa Bernhard, Nicholson called the markets' reaction "over-exaggerated" and "overdone."

"And the reason for that," he said, "is that the Fed (U.S. Federal Reserve) has stated that they're data dependent. We know that they have a bias towards cutting [rates] in September. They left that door open last week. However, I think right now the market is pricing in five rate cuts through the end of the year. And I think that that's exorbitant, because you're basing this off of one data point, and we still have several more CPI prints to come as well as an additional nonfarm payrolls [report]."

By year's end, he sees the S&P 500 moving "back up to its recent highs and maybe a little bit higher."

"We think that this pullback is healthy for the for the markets, and ultimately that will allow for a more broader run up in the markets down the road," Nicholson added.