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.
U.S. stock futures tumbled Monday as part of a global market sell-off centered around U.S. recession fears. Japan’s Nikkei 225 plunged 12% in its worst day since the 1987 Black Monday crash for Wall Street.
Dow Jones Industrial Average futures dropped 1,183 points, or 3%, following a 611-point loss on Friday.
S&P 500 futures are down 4.4% after the benchmark lost 1.8% on Friday.
Nasdaq-100 futures lost 5.9% as big tech stocks got hit hard in early trading.
Here are the top political news stories for today.
@PassionateDovesDemocrat2yrs2Y
A lot of what’s happening in the stock market right now has to do with some really deep level stuff regarding Japan, its currency and borrowing against it to buy US stocks. It all shifted last few days.
It’s like a supertanker making a sudden move. The huge wake will catch a lot of unsuspecting victims.
Long term investors will ride it out but there’s definitely short term ‘boats’ getting rocked.
Lots of focus now on what the Fed will do (intra-meeting cut?) but the reality is the bond market has already made the move ahead of the Fed so it’s sorta irrelevant right now, minus any panic factor.
Should be interesting few days ahead.
@DrearyGeckoRepublican2yrs2Y
I'm expecting some banks, possibly systemically important banks to fail. Everybody minted money on these carry trades for years and they are extremely levered & crowded. Now reversing and there aren't enough lifeboats for everyone to escape the sinking ship.
@Vot3rVo1ceDingoForward2yrs2Y
Yen carry reversal. Market is tracking early august 2007 The july august correction was roughly 12% so should bottom at 4900-5000 then get a monster rip into mid october.
@ISIDEWITH2yrs2Y
@ISIDEWITH2yrs2Y
@ISIDEWITH2yrs2Y
@ISIDEWITH2yrs2Y
@ISIDEWITH2yrs2Y
Join in on more popular conversations.
