Wall Street fell the most in nearly two years on Monday, continuing a global rout in financial markets, as fear worsens that the US economy is slowing down.
- The S&P 500 fell 160.23 points, or 3%, to 5,186.33.
- The Dow Jones Industrial Average fell 1,033.99 points, or 2.6%, to 38,703.27.
- The Nasdaq composite fell 576.08 points, or 3.4%, to 16,200.08.
Worries over the economy are front and center after a series of disappointing reports, including a
weaker-than-expected jobs report on Friday. Big Tech stocks, which have led the market to record after record this year, bore the brunt of the selling, the
AP reports.
The drops were just the latest in a global sell-off that began last week. Japan's Nikkei 225 helped start Monday by plunging 12.4% for its worst day since the Black Monday crash of 1987. It was the first chance for traders in Tokyo to react to Friday's report showing U.S. employers slowed their hiring last month by much more than economists expected. That was the latest piece of data on the US economy to come in weaker than expected, and it's all raised fears that the Federal Reserve has pressed the brakes on the US economy by too much for too long through high interest rates in hopes of stifling inflation.
US stocks fell sharply after the opening bell Monday. They pared their losses after a report said growth for US services businesses was a touch stronger than expected. Growth was led by arts, entertainment, and recreation businesses, along with accommodations and food services, according to the Institute for Supply Management. Treasury yields also pared their drops following the better-than-expected data. Still, stocks of companies whose profits are most closely tied to the economy's strength took sharp losses on the fears about a slowdown. The small companies in the Russell 2000 index dropped 3.7%, further dousing what had been a revival for it and other beaten-down areas of the market.
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Making things worse for Wall Street, Big Tech stocks also tumbled as the market's most popular trade for much of this year continued to unravel. Apple fell 4.8% Monday after Warren Buffett's Berkshire Hathaway disclosed that it had slashed its ownership stake in the iPhone maker. Nvidia, the chip company that's become the poster child of Wall Street's AI bonanza, fell even more, 6.4%. (More stock market stories.)
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