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Global markets fall amid US recession fears, disappointing jobs data
(MENAFN) Global stock markets have been hit hard by mounting recession fears following the latest U.S. jobs report, which revealed that the unemployment rate in the United States rose to 4.3 percent in July, its highest level in three years. This increase in unemployment, coupled with a significant slowdown in hiring, has raised concerns about potential weaknesses in the labor market and heightened risks of a recession. The negative data has triggered a severe global market sell-off, with investors reacting to the potential economic downturn.
On Tuesday, U.S. stock futures plummeted sharply as part of the broader market decline driven by recession fears. The Dow Jones Industrial Average fell by more than 1,200 points, or 2.7 percent, while the S&P 500 dropped 4 percent, equivalent to 225 points. The Nasdaq 100 experienced a steep decline of 6.15 percent. The selling pressure was exacerbated by the significant drop in Dow Jones futures on Friday, which fell more than 600 points. Concerns about the Federal Reserve's delayed interest rate cuts, despite the economic slowdown, have further fueled market anxiety, as the central bank opted to maintain rates at a two-decade high last week.
In the technology sector, Apple Inc. and Nvidia Inc. spearheaded a widespread sell-off, following Berkshire Hathaway Inc.'s decision to reduce its stake in Apple. This move, combined with recession fears, halted a prolonged rally in tech stocks. Shares of major tech companies including Google's Alphabet Inc., AmazonInc., Meta Platforms Inc., Microsoft Corp., and Tesla Inc. plummeted by 12.2 percent in premarket trading. The combined market value of these seven companies is projected to lose nearly USD1 trillion, reflecting the severe impact of the market turmoil.
On Tuesday, U.S. stock futures plummeted sharply as part of the broader market decline driven by recession fears. The Dow Jones Industrial Average fell by more than 1,200 points, or 2.7 percent, while the S&P 500 dropped 4 percent, equivalent to 225 points. The Nasdaq 100 experienced a steep decline of 6.15 percent. The selling pressure was exacerbated by the significant drop in Dow Jones futures on Friday, which fell more than 600 points. Concerns about the Federal Reserve's delayed interest rate cuts, despite the economic slowdown, have further fueled market anxiety, as the central bank opted to maintain rates at a two-decade high last week.
In the technology sector, Apple Inc. and Nvidia Inc. spearheaded a widespread sell-off, following Berkshire Hathaway Inc.'s decision to reduce its stake in Apple. This move, combined with recession fears, halted a prolonged rally in tech stocks. Shares of major tech companies including Google's Alphabet Inc., AmazonInc., Meta Platforms Inc., Microsoft Corp., and Tesla Inc. plummeted by 12.2 percent in premarket trading. The combined market value of these seven companies is projected to lose nearly USD1 trillion, reflecting the severe impact of the market turmoil.
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