Global stock markets fall amid recession fears, geopolitical tensions

(MENAFN) Global stock markets experienced intensified losses on Monday, driven by escalating concerns that the U.S. economy may be sliding into a recession, compounded by weak unemployment data and investor anxiety over the potential expansion of conflict in the Middle East. In the U.S., major stock indices fell sharply, with the Dow Jones dropping 1.71 percent, the S&P 500 declining 3.66 percent, and the Nasdaq plunging 6.34 percent. This downturn was exacerbated by a sell-off in technology stocks, led by Apple and Nvidia. The decision by Berkshire Hathaway to reduce its stake in Apple, coupled with growing recession fears, ended a prolonged rally in the tech sector.

High-profile stocks from major tech companies, including Google's Alphabet Inc., AmazonInc., Meta Platforms Inc., Microsoft Corp., and Tesla Inc., suffered significant declines of 12.2 percent in premarket trading. The combined losses in these seven major companies are projected to nearly erase USD1 trillion from their market value. In Europe, the negative sentiment was reflected in major stock indices with Paris falling 2.42 percent, London down 1.95 percent, Frankfurt decreasing 2.49 percent, Amsterdam dropping 3.05 percent, Milan down 3.31 percent, Zurich falling 2.97 percent, and Madrid declining 2.79 percent. Meanwhile, Japan's Nikkei index closed with its largest daily drop ever, falling more than 4,400 points, or 12 percent, driven by a strengthening yen and heightened recession concerns spurred by disappointing U.S. economic data.

The market turmoil also extended to the Middle East, where stock indices collectively declined. Amid these global market disturbances, gold prices rose as investors sought refuge from the economic uncertainty. Spot gold prices increased by 0.14 percent to USD2,446.83 per ounce, recovering from an earlier decline, while U.S. gold futures rose 0.8 percent to USD2,488.50. This rise in gold prices reflects growing fears that the U.S. may be headed toward a severe economic downturn and the anticipation that the Federal Reserve may need to implement aggressive monetary easing measures. 

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