Global stock markets were rocked on Monday, with over $1.93 trillion erased as fears of an impending U.S. recession prompted a massive sell-off. The Dow Jones Industrial Average plummeted by 863.70 points, or 2.17%, settling at 38,873.56. The S&P 500 and Nasdaq Composite also suffered significant losses, down 2.42% and 2.77%, respectively.
This turmoil followed a disheartening jobs report from last Friday, which revealed that the U.S. economy added just 114,000 jobs in July—far below expectations—and saw the unemployment rate tick up to 4.3%. The weak data intensified concerns that the U.S. might be slipping into a recession, driving investors to abandon stocks in favor of safer assets.
International markets mirrored the U.S. downturn. Japan’s Nikkei 225 plunged 12.4%, marking its worst day since the 1987 Black Monday crash. South Korea’s Kospi index fell 8.8%, European stocks sank roughly 3%, and Bitcoin experienced a dramatic 12% decline. Even the Russell 2000, which tracks small-cap stocks, dropped 5.5%.
Big Tech was not spared. Shares of Alphabet, Netflix, and Meta saw declines between 2.5% and 4.0%. Nvidia, a major player in AI chips, plummeted over 8% due to delays in its chip production. Apple’s stock fell 4.6% after Warren Buffett’s Berkshire Hathaway reduced its stake in the tech giant.
In the bond market, Treasury yields fell as investors flocked to safe-haven assets. The yield on the 2-year Treasury dropped to 3.81% from 3.88% late on Friday, reflecting a shift towards more secure investments. Meanwhile, gold prices dropped over 2% as the broader market decline affected bullion. Spot gold fell to $2,393.66 an ounce, while silver plunged 5.1% to $27.08.
Oil prices also continued their downward trend, with Brent crude slipping below $76 a barrel and West Texas Intermediate falling to just above $72. The combined impact of these declines underscores a widespread financial market crisis driven by fears of economic downturn.
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