Posted on 08/05/24
| News Source: FOX Business
Stocks plunged on Monday as U.S. recession fears caused turmoil throughout the global markets.
The Dow Jones Industrial Average tumbled 1,000 points, while the Nasdaq Composite and S&P 500 also fell by 3.9% and 3.2%, respectively.
A weak jobs report and shrinking manufacturing activity in the world's largest economy, coupled with dismal forecasts from the big technology firms, pushed the Nasdaq 100 and Nasdaq Composite into a correction last week.
"While Friday’s employment report was disappointing, it wasn’t the only worrisome economic indicator, only the latest," said Greg McBride, Bankrate's chief financial analyst. "Couple economic concerns with the cacophony of earnings disappointments and weak corporate outlooks, global unrest, and currency gyrations, and you have the recipe for sudden volatility."
The weak jobs data also triggered what is known as the "Sahm Rule," seen by many as a historically accurate recession indicator.
"The July jobs report is being viewed as a recession warning, and the markets are responding accordingly," said Bill Adams, chief economist at the Dallas-based Comerica Bank.