Global markets faced a severe downturn on Monday, erasing more than $1.93 trillion from the U.S. stock market alone. Investor anxiety heightened after weak economic data from the previous week fueled fears of an impending recession in the United States.
Major U.S. Indices Plummet
At 11:30 a.m. ET, the Dow Jones Industrial Average fell by 863.70 points, a drop of 2.17%, while the S&P 500 declined by 129.55 points, or 2.42%. The tech-heavy Nasdaq Composite took a significant hit, losing 465.25 points, or 2.77%. The downward trend intensified as the trading day progressed, with the Dow Jones falling by 996 points by 9:50 a.m. ET, reflecting growing concerns among investors.
Global Impact
The ripple effect of the U.S. market turmoil was felt worldwide. Japan’s Nikkei 225 plunged 12.4%, marking its worst day since the Black Monday crash of 1987. Similarly, South Korea’s Kospi index plummeted 8.8%, while European markets and cryptocurrencies like Bitcoin also saw significant declines. Big Tech stocks were not spared; shares of Alphabet, Netflix, and Meta fell between 2.5% and 4.0%, with Nvidia plunging over 8% due to reports of AI chip delays.
Safe-Haven Assets See Movement
In the bond market, Treasury yields dropped as investors flocked to safer assets. The yield on the 2-year Treasury fell to 3.81%, down from 3.88% late on Friday. Meanwhile, gold prices saw a sharp decline of more than 2%, with spot gold trading at $2,389.79 an ounce by mid-morning.
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