Topline
Stock markets across Asia were hit by a massive selloff on Monday, while U.S. stock futures also tumbled after last week’s worse-than-expected U.S. jobs report triggered renewed fears of a recession.
Key Facts
Japan’s Nikkei 225 index was down more than 12.4% to 31,458.42 points late on Monday afternoon, while the Tokyo Stock Price Index (TOPIX) slumped more than 12.2%—making it the single worst day for Japanese stocks since 1987.
Other major global stock indexes were also hit, with South Korea’s KOSPI falling nearly 8.9%, Taiwan’s Taiex slumping 8.35%, Singapore’s STI Index down 4.7% and Australia’s ASX 200 dropping 3.7%.
The U.S. futures market was in the red early on Monday, with Nasdaq Futures down 5% to 17,623.50 points, while S&P 500 Futures and Dow Futures fell 2.6% and 1.12%, respectively.
European markets were down Monday, with the London Stock Exchange’s FTSE 100 index down nearly 2%, while the STOXX Europe 600 index fell more than 3%.
The CBOE Volatility Index, which is often referred to as the market’s fear gauge, was up 58.7% early on Monday to 37.12—its highest level since 2020.
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Tangent
The global market rout has also impacted cryptocurrency prices, with bitcoin falling below $50,000 on Monday before recovering to $52,778, slumping 13% over the past 24 hours. The price of Ether slumped to $2,334, down nearly 20% in the same period.
Key Background
The U.S. economy added 114,000 jobs in July, according to the Labor Department’s monthly report released Friday. This number was well below analysts’ predictions of 185,000 jobs. The country’s unemployment rate also rose from 4.1% to 4.3% last month, the highest level since October 2021. The poor job numbers raised concerns that the Federal Reserve may have waited too long to slash its interest rates, which have hit a 23-year high. The regulator kept its benchmark rate unchanged after a meeting last week, however, Chairman Jerome Powell said: “A rate cut could be on the table at the September meeting.”
Section Title
Nasdaq Tumbles Over 3% After Jobs Report Sparks Recession Fears (Forbes)