U.S. stocks fell sharply on Monday amid a global market sell-off driven by fears of a U.S. recession. The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 all experienced significant declines.
Key Highlights:
- Dow Jones Industrial Average: Dropped 1,031 points (2.6%)
- Nasdaq Composite: Lost 4%
- S&P 500: Slid 3.2%
Reasons for the Market Meltdown:
- Recession Fears: Investors are worried about a potential U.S. recession after a disappointing July jobs report.
- Federal Reserve’s Stance: Concerns that the Federal Reserve is not cutting interest rates to support the slowing economy, maintaining the highest rates in two decades.
- Tech Sell-Off: A significant unwinding of the artificial intelligence trade, with tech shares among the worst performers.
Notable Tech Stock Declines:
- Nvidia: Tumbled more than 7%
- Apple: Dropped nearly 5% after Berkshire Hathaway reduced its stake
- Tesla: Fell by 10%
- Broadcom: Down 7%
- Super Micro Computer: Down 12%
Global Impact:
- Japan’s Nikkei 225: Plunged 12%, its worst day since the 1987 Black Monday crash. The index closed at 31,458.42, losing 4,451.28 points.
- European Markets: Stoxx 600 fell by 3%
- U.S. Treasury Yields: Tumbled as investors moved to bonds, with the 10-year note yielding 3.7%
- Bitcoin: Dropped from nearly $62,000 on Friday to around $52,000 on Monday
Volatility Index:
- CBOE Volatility Index (VIX): Reached as high as 53, its highest level since the early days of the pandemic in 2020, last trading at 46.
TOPICS:
NASDAQ