OAN Staff James Meyers
8:00 AM – Monday, August 5, 2024
Wall Street’s main indexes plummeted on Monday, as fears are continuing to grow that the United States is going into a recession following last week’s economic numbers ripping through global markets.
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The Dow Jones nosedived over 1,100 points after the opening bell, while the Nasdaq Composite fell almost 5% after entering correction territory last week.
Tokyo-based Nikkei suffered its worst single-day retreat since the “Black Monday” crash of 1987, closing 12.4% lower and European stocks fell to near six-month lows.
Additionally, the pan-European STOXX 600 index was down 2.6% at 487.15 points, its lowest since February.
Furthermore, Nvidia, Meta and Apple all lost 6% of their market capitalization.
Apple was still suffering from billionaire investor Warren Buffet’s announcement last weekend of cutting his stake in the company by half.
Buffet also sold off $3 billion worth of stock in Bank of America.
In crypto, Bitcoin lost over 17% of its value and Ethereum plummeted over 21%.
In the last 24 hours, the global digital currency market lost a total of $1.79 trillion from its market capitalization.
The plummeting of the stock market comes after the latest job reports figures came out last week, which showed that hiring did not meet expectations and caused Wall Street to be fearful of a possible recession.
On Sunday, analysts at investment banking titan Goldman Sachs on Sunday raised the odds of a recession next year from 15% to 25%.
The underwhelming jobs report and the selloff of global stocks increased analyst expectations that the Federal Reserve will step in and institute emergency interest rate cuts.
“The Federal Reserve has been late in cutting rates, but that has been true for some time,” Paul Donovan, a UBS economist, wrote in a client note Monday morning cited by the New York Times.
“The policy error is making things worse for lower-income households.”
Prior to Monday, the markets priced in a 78% chance that the Fed will not only cut rates in September, but cool by a full 50 basis points.
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