Wall Street today: S&P 500, Dow Jones, Nasdaq crash on recession fears; over $1.93 tn wiped out from markets

Wall Street today: S&P 500, Dow Jones, Nasdaq crash on recession fears; over $1.93 tn wiped out from markets/AFP

MINT | August 5, 2024 | 11:08 PM IST | Breaking News | Follow on Google News

Wall Street today: S&P 500, Dow Jones, Nasdaq crash on recession fears; over $1.93 tn wiped out from markets

Wall Street today: S&P 500, Dow Jones, Nasdaq crash on recession fears; over $1.93 tn wiped out from markets

US stock indices crashed on Monday on fears of the United States slipping into recession following weak economic data last week.

At 11:30 a.m. ET, the Dow Jones Industrial Average was down 863.70 points, or 2.17%, at 38,873.56, the S&P 500 was down 129.55 points, or 2.42%, at 5,217.01, and the Nasdaq Composite was down 465.25 points, or 2.77%, at 16,310.92.

As of 9:50 a.m. Eastern time, the Dow Jones Industrial Average was down 996 points, or 2.5%, the S&P 500 was down by 3.1%, and the Nasdaq composite slid 3.8%.

At the opening bell, the Dow Jones Industrial Average fell 681.07 points, or 1.71%, to 39,056.19. The S&P 500 was lower by 195.42 points, or 3.66%, at 5,151.14, while the Nasdaq Composite dropped 1,063.63 points, or 6.34%, to 15,712.53.

More than $1.93 trillion has been wiped out from the US stock market so far on Monday as the Nasdaq dropped over 1,000 points.

The weak jobs data released on Friday indicated that the US economy is slipping into recession.

On Friday, the Department of Labor reported that the US economy added 114,000 jobs in July, fewer than expected, while the jobless rate rose to 4.3%.

Worlwide also, the equities plummeted on Monday on concerns around the economic outlook.

Japan’s Nikkei 225 plunged 12.4%, its worst day since the Black Monday crash of 1987.

South Korea’s Kospi index tanked 8.8%, stock markets across Europe sank roughly 3%, and bitcoin dropped 12%.

The small companies Russell 2000 index dropped 5.5%.

Big Tech stocks also tumbled sharply.

Shares of Alphabet, Netflix and Meta declined between 2.5% and 4.0%.

AI chip company Nvidia plunged more than 8% after reports of a delay in the launch of its upcoming artificial-intelligence chips due to design flaws.

Apple stock fell 4.6% after Warren Buffett’s Berkshire Hathaway said that it reduced its stake in the iPhone maker.

In the bond market,Treasuryyields fell as investors rushed to safe-haven assets.

The yield on the 2-year Treasury fell to 3.81% from 3.88% late on Friday.

A report showed US services sector activity rebounded from a four-year low in July amid a rise in orders and employment.

Bullion

Gold prices fell more than 2% on Monday on global markets rout.

Spot gold was down 2.2% at $2,389.79 an ounce by 10:15 a.m. ET (1415 GMT). US gold futures lost 1.6% to $2,430.00.

Spot silver was down 5.1% at $27.08.

Crude oil

Oil extended losses to a new seven-month low on a selloff in global markets.

Brent futures slipped below $76 a barrel.

West Texas Intermediate dropped to a little above $72.

MINT