A staggering $1.93 trillion was erased from the U.S. stock market on Monday, driven by intense recession fears and weak economic indicators. The Dow Jones Industrial Average plummeted by 863.70 points, or 2.17%, settling at 38,873.56. The S&P 500 and Nasdaq Composite suffered similarly severe declines, with losses of 2.42% and 2.77%, respectively. The Nasdaq alone saw a drop of over 1,000 points, marking a significant downturn.
The market turbulence followed disheartening job data released on Friday. The U.S. Department of Labor reported a smaller-than-expected job increase of 114,000 for July, and the unemployment rate rose to 4.3%. These figures fueled concerns that the U.S. economy might be heading into a recession, prompting investors to flee riskier assets.
Globally, markets mirrored this panic. Japan’s Nikkei 225 plunged 12.4%, its worst day since the infamous Black Monday of 1987. South Korea’s Kospi index fell 8.8%, European markets declined around 3%, and Bitcoin dropped by 12%. The Russell 2000 index, which tracks small-cap stocks, decreased by 5.5%.
Tech giants also felt the sting. Alphabet, Netflix, and Meta saw their shares drop between 2.5% and 4.0%. Nvidia, a key player in AI chip technology, fell over 8% following news of delays due to design flaws. Apple’s stock dropped 4.6% after Berkshire Hathaway reduced its stake in the company.
In response to the market chaos, Treasury yields fell as investors sought safety in bonds. The yield on the 2-year Treasury note dropped to 3.81%, down from 3.88% late Friday. Meanwhile, gold prices fell over 2%, with spot gold trading at $2,389.79 an ounce and silver plunging by 5.1% to $27.08. Oil prices also extended their losses, with Brent crude slipping below $76 per barrel.
This global sell-off reflects mounting anxiety over the U.S. economic outlook and its potential ripple effects worldwide.
For more details on the unfolding crisis, visit https://www.livemint.com/market/stock-market-news/wall-street-today-s-p-500-dow-jones-nasdaq-tumble-on-growing-recession-fears-11722862336627.html
