Worst day for Global Stocks: Wall Street, Europe, Nikkei hit hard

APP: Global stock markets experienced an ugly day as Nikkei suffered a historic drop and New York fell hard in a pullback and a decisive down day in Europe.

Global markets experienced significant downturns on Monday, with Japan’s Nikkei suffering a historic drop and Wall Street facing sharp declines due to economic concerns and recent monetary policy changes.

Following a decisive down day in Europe, all major US indices ended in the red, with the Dow Jones losing 2.6% and finishing at 38,703.27.

The market turbulence is attributed to poor US employment data, negative manufacturing surveys, and Japan’s recent interest rate hike, which led to a 12.4% drop in the Nikkei.

Analysts remain divided on whether the downturn signals an impending recession or temporary market volatility.

The Dow dropped 1,033.99 points, or 2.6%, to end at 38,703.27. The Nasdaq Composite lost 3.43% and closed at 16,200.08, while the S&P 500 slid 3% to end at 5,186.33. The blue-chip Dow and S&P 500 registered their biggest daily losses since September 2022.

Japan’s stock market posted its worst drop since Wall Street’s Black Monday in 1987, contributing to fears of global turmoil in the markets.

Fears of a U.S. recession were the main culprit for the global market meltdown after Friday’s disappointing July jobs report.

Investors are also concerned that the Federal Reserve is behind in cutting interest rates to bolster an economic slowdown, with the central bank choosing instead to keep rates at the highest in two decades last week.

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