Market Meltdown: Wall Street Plunges Amid Economic Slowdown
As worries about a slowdown in the U.S. economy grew, nearly every stock on Wall Street plunged on Monday, sparking another selloff in global financial markets. The S&P 500 was down 2.4% in midday trading, on track for its worst day since 2022, while the drop in the global sell-off began last week with Japan’s Nikkei 225 index plunging 12.4% at the open on Monday, its worst day since the Black Monday crash in 1987.
Concerns Over Federal Reserve Policy and Interest Rates
The latest data on the U.S. economy, showing weaker-than-expected performance, has raised concerns that the Federal Reserve may implement high interest rates to curb inflation. Professional investors warned of potential market trends amplifying due to technical factors, with significant losses seen in South Korea’s Kospi index, European stocks, and even the value of Bitcoin. The uncertainty over the severity of the market losses has led to speculation about a potential emergency meeting by the Fed to cut interest rates.
Impact on Big Tech and Market Trends
Big Tech stocks, including Apple and Nvidia, experienced significant declines as the market’s most popular trades continued to unravel. Expectations for future growth and concerns over high stock prices have led to disappointing profit reports and a general pessimism in the market. The ongoing turmoil in global hotspots, such as Israel’s conflict with Hamas, has added to the overall apprehension among investors.
Political Factors and Market Response
With the upcoming U.S. election adding further uncertainty, concerns over policy implications and the potential impact on the market have investors on edge. Former President Donald Trump and Vice President Kamala Harris have been at the center of blame for the market crash, although the exact influence of political figures on stock market fluctuations remains unclear. As the market navigates through this period of volatility, the focus remains on the interplay between economic indicators, geopolitical events, and investor sentiment.
