US shares see significant losses on Monday’s session amid concerns around recession

(MENAFN) Major U.S. stock exchanges experienced significant losses on Monday as fears of a recession continued to impact global markets. The Dow Jones Industrial Average dropped by 931 points, or 2.3 percent, reaching 38,836 at 10:05 a.m. EDT (1400 GMT). This decline follows a loss of 610 points, or 1.51 percent, on Friday. Similarly, the S&P 500 fell by 135 points, or 2.53 percent, to 5,211, extending its Friday decline of 100 points, or 1.84 percent. The Nasdaq Composite also saw a sharp decrease, plummeting 600 points, or 3.6 percent, to 16,174, after falling nearly 418 points, or 2.43 percent, on Friday.

Despite recent job market data suggesting a cooling labor market and increasing the likelihood of a Federal Reserve rate cut in September, investors remain concerned that the central bank may be slow in adjusting its monetary policy, potentially leading the U.S. economy into a recession. The VIX volatility index, often referred to as the "fear index," surged by 81 percent to 42.11, indicating heightened market anxiety. The yield on the 10-year U.S. Treasury note declined by 1.35 percent to 3.736 percent.

In currency markets, the dollar index fell by 0.6 percent to 102.59, while the euro appreciated by 0.55 percent to USD1.0971 against the dollar. Precious metals also saw declines, with gold decreasing by 2.2 percent to USD2,389 per ounce and silver dropping by 5.3 percent to USD27.05. Oil prices experienced a drop of approximately 1 percent, with Brent crude trading at USD76.11 per barrel and West Texas Intermediate at USD72.70.

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