Global stock markets plunge

Global stock markets experienced a significant plunge on Monday, driven by fears of a U.S. economic slowdown. The Dow Jones opened over 1,000 points lower, the S&P 500 dropped by 4.25%, and the Nasdaq Composite fell by more than 6%, though they recovered slightly later in the day. Japanese stocks also faced severe losses, with the Nikkei 225 index dropping over 12%, marking its biggest loss since 1987. Concerns about a sharp economic downturn in the U.S. have heightened expectations that the Federal Reserve will need to cut interest rates.

The market turmoil caused technical issues for several online trading platforms, including Charles Schwab, Fidelity, E-Trade, and Robinhood, which were mostly resolved by midday. Oil prices also declined, with West Texas Intermediate crude futures falling to $72.92 per barrel and Brent crude futures to $76.31 per barrel, amid worries about reduced demand from a potential U.S. recession and weak Chinese demand.

The stock selloff reaccelerated by midday, with the Dow down 916 points, the S&P 500 falling 2.7%, and the Nasdaq Composite sliding 3.2%. Despite the market meltdown, analysts urged investors to remain calm, noting that the overall economic data and tech sector performance indicate resilience. The VIX, Wall Street’s fear gauge, showed some easing in investor anxiety as the day progressed.

Source: CNN