Global markets are in turmoil as a staggering $1.93 trillion was erased from the U.S. stock market on Monday, driven by growing concerns of an impending recession. Major indices saw sharp declines, with the Dow Jones Industrial Average dropping 2.17%, the S&P 500 plunging 3.66%, and the tech-heavy Nasdaq Composite tumbling by 6.34%.
This massive sell-off was triggered by weak economic data released last week, particularly disappointing jobs numbers from the U.S. Department of Labor, which reported only 114,000 jobs added in July, falling short of expectations. The unemployment rate ticked up to 4.3%, adding to the market’s anxiety.
The bond market reflected investors’ rush to safety, with Treasury yields falling sharply. The yield on the 2-year Treasury note dropped to 3.81% as investors fled to less risky assets amid the market chaos.
The ripple effects were felt worldwide, with Japan’s Nikkei 225 experiencing a historic 12.4% drop, its worst day since the Black Monday crash of 1987. South Korea’s Kospi index fell 8.8%, European markets sank around 3%, and even cryptocurrencies were not spared, with Bitcoin dropping 12%.
In the U.S., Big Tech stocks were among the hardest hit. Shares of companies like Alphabet, Netflix, and Meta saw declines between 2.5% and 4%, while Nvidia plummeted over 8% due to reported delays in its AI chip launch. Apple also suffered, with its stock falling 4.6% after Berkshire Hathaway announced a reduction in its stake in the tech giant.
Commodity markets also took a hit. Gold prices dropped over 2% as investors scrambled to liquidate positions, and silver plunged by 5.1%. Meanwhile, oil prices slid to a seven-month low, with Brent futures falling below $76 a barrel.
The market volatility underscores the deepening concerns about the global economic outlook, with many investors now bracing for a prolonged period of uncertainty and potential recession. For more details on the market’s movements, visit Livemint.