Major US shares decline on Tuesday as weak financial data spark recession fears
(MENAFN) Major US stock exchanges experienced significant declines on Tuesday as weak economic data intensified recession fears. The Dow Jones Industrial Average fell by 626 points, or 1.51 percent, closing at 40,936. The S&P 500 dropped 119 points, or 2.12 percent, ending the day at 5,528, while the nasdaq saw a sharp decline of 577 points, or 3.26 percent, closing at 17,136. This marked the worst daily performance for all three indices since the global market sell-off on August 5, when they similarly suffered around a 3 percent loss each due to recession concerns.
The downturn was fueled by concerning economic reports. According to S&P Global, US production fell in August for the first time in seven months. Additionally, the Institute for Supply Management (ISM) reported that the US manufacturing sector contracted for the fifth consecutive month. These indicators contributed to a renewed sense of unease regarding the state of the US economy.
The VIX volatility index, often referred to as the "fear index," surged 33.2 percent to 20.72, reflecting increased market anxiety. The 10-year US Treasury yield decreased by 2 percent to 3.833 percent. In currency markets, the dollar index rose slightly by 0.09 percent to 101.75, while the euro fell 0.02 percent to USD1.1041.
Precious metals also saw declines, with gold down 0.26 percent to USD2,493 per ounce and silver dropping 1.7 percent to USD28.05. Oil prices fell sharply, with Brent crude dropping more than 4.5 percent to USD73.72 per barrel and West Texas Intermediate crude decreasing to USD70.19. These declines in commodities reflect the broader economic uncertainty affecting markets.
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