Over $1.93 trillion was wiped out from the US stock market on Monday as fears of an impending recession rattled investors. Weak economic data, including disappointing job numbers from the previous week, fueled concerns about the health of the economy, prompting a dramatic downturn across major indices.
The Dow Jones Industrial Average plummeted 996 points, or 2.5%, by mid-morning, with the S&P 500 and Nasdaq Composite falling 3.1% and 3.8% respectively. This sharp decline mirrors global market reactions, with Japan’s Nikkei 225 suffering a 12.4% drop—its worst performance since the 1987 Black Monday crash. Similarly, South Korea’s Kospi index sank 8.8%, while European markets saw a roughly 3% decline.
Investors flocked to safer assets, causing Treasury yields to fall, with the 2-year yield dipping to 3.81% from 3.88%. Meanwhile, Big Tech stocks were hit hard, with shares of Alphabet, Netflix, and Meta tumbling between 2.5% and 4.0%. Nvidia faced an 8% drop following reports of delays in its AI chip launch, and Apple shares fell 4.6% after Warren Buffett’s Berkshire Hathaway reduced its stake in the company.
Gold prices also experienced a significant downturn, dropping over 2% amid the market turmoil. The selloff extended to crude oil, with Brent futures slipping below $76 a barrel and West Texas Intermediate falling just above $72.
This intense market volatility is a clear reflection of the growing concerns about the global economic outlook. Investors are bracing for further shocks as uncertainty looms over future economic data.
Source https://www.livemint.com/market/stock-market-news/wall-street-today-s-p-500-dow-jones-nasdaq-tumble-on-growing-recession-fears-11722862336627.html
