US Stock Market Plunges, Global Markets in Panic
The US stock market tumbled Monday, experiencing its worst day in nearly two years and sparking a global market sell-off. Fears of a US recession first sent the market into a panic on Friday, with the situation worsening as markets reopened this week....
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Facts
- The US stock market tumbled Monday, experiencing its worst day in nearly two years and sparking a global market sell-off. Fears of a US recession first sent the market into a panic on Friday, with the situation worsening as markets reopened this week.[1]
- The Dow Jones Industrial Average lost 1K points (2.6%), while the S&P 500 and Nasdaq Composite lost 160 (3%) and 576 points (3.43%), respectively. A troubling jobs report last week and the Federal Reserve’s decision to not cut interest rates have increased market fears of a recession.[2]
- The “Magnificent Seven” stocks — blue chip companies, Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla — lost about $650B in market value during Monday’s plunge. Nvidia’s price dropped as much as 13%, while Apple (more than 4%), Amazon (more than 8%), and Microsoft (5%) all experienced major losses.[3]
Sources: [1]CNBC, [2]FOX News and [3]Yahoo Finance.
Narratives
- Establishment-critical narrative, as provided by ZeroHedge. Economic and political turmoil have created a changing dynamic that could fundamentally alter the status quo of global markets. With the rise of globalism, markets are more interconnected than ever, and Japan’s plunging economy has deep ramifications for the US, which is the catalyst for the entire world. The Fed’s looming decision on cutting rates may be the first domino, but changing political tides towards populism may be charting an entirely new outlook that renders conventional wisdom obsolete.
- Pro-establishment narrative, as provided by New York Times. How many times have we seen the stock market plummet, sparking global hysteria and doomsday predictions? The answer is many. The recent market turmoil is no different than its predecessors, and the best thing for investors — both small and large — is to remain calm and stay the course. It’s impossible to predict what the market will be tomorrow, never mind next month or next year. Everything will self-correct in due time, and there’s no reason to act impulsively.
