Recession Fears: $2.9 Trillion Wiped Off Stock Markets
U.S. stocks fell sharply Monday, recording their biggest one-day declines in nearly two years, as investor fears about the health of the U.S. economy sparked broad-based selling.
The Nasdaq Composite shed 3.4%, while the S&P 500 and Dow Jones Industrial Average ended 3% and 2.6% lower, respectively. Monday's selloff represented the biggest single-session point declines for each of the major indexes since Sept. 13, 2022.
The downturn for U.S. equities Monday followed a 12% decline for Japan's Nikkei index overnight and extends a multi-week slide for U.S. stocks that accelerated on Friday with the release of a July jobs report that came in far worse than expected.
Weak data recently has sparked growing concerns that the U.S. economy is weaker than previously thought, raising expectations that the Federal Reserve will have to cut interest rates aggressively in the coming months.
Recession Fears: $2.9 Trillion Wiped Off Stock Markets
Illustrating how widespread the selling was on Monday, every sector of the S&P 500 declined at least 1.7%, with information technology leading the way with a 3.8% drop, while every Dow component finished in the red, pushing the index to a 1000-point loss.
Nvidia (NVDA) closed 6.4% lower after falling more than 15% early in the session, Apple (AAPL) fell 4.8%, Alphabet (GOOGL), Tesla (TSLA) and Amazon (AMZN) each fell more than 4%.
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Amid the risk-off moves on Monday, the price of bitcoin dipped below $50,000 for the first time since February, though it was trading around $54,000 recently. Gold prices fell less than 1% to around $2,450, after hitting record highs last week.
