US stock indices plummeted on Monday due to fears of a recession in the United States, fueled by weak economic data from last week. At 11:30 a.m. ET, the Dow Jones Industrial Average was down 2.17%, the S&P 500 fell 2.42%, and the Nasdaq Composite dropped 2.77%.
The market opened with sharp declines, with the Dow Jones losing 1.71%, the S&P 500 falling 3.66%, and the Nasdaq Composite plunging 6.34%. Over $1.93 trillion has been wiped out from the US stock market.
Friday’s jobs data showed the US economy added only 114,000 jobs in July, with the unemployment rate rising to 4.3%, intensifying recession fears. These fears negatively impacted global markets, with Japan’s Nikkei 225 down 12.4%, South Korea’s Kospi falling 8.8%, European markets sinking around 3%, and bitcoin dropping 12%.
Big tech stocks saw significant declines, with Alphabet, Netflix, and Meta falling between 2.5% and 4.0%. Nvidia dropped over 8%, and Apple shares decreased by 4.6% after Berkshire Hathaway reduced its stake.
In the bond market, Treasury yields fell as investors moved to safe-haven assets. The 2-year Treasury yield dropped to 3.81% from 3.88%. US services sector activity rebounded in July due to an increase in orders and employment.
In the cryptocurrency market, liquidations exceeded $1 billion in the past 24 hours. Bitcoin and ether suffered heavy losses, with ether experiencing its steepest single-day drop since May 2021. The crypto fear and greed index signaled “fear.” The liquidations were triggered by geopolitical tensions and poor earnings reports from tech firms, which dampened the AI hype among investors.
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