Stock market crash: It proved to be a bloody Monday for Dow Jones, Nasdaq, and S&P 500. After crashing over 1000 points in early trade, the Dow Jones carried the losses throughout the day. Just ahead of closing, the Dow Jones was down by 1088 points, which translates to 2.7%. Other indices followed in its footsteps with the S&P 500 being down 3.3% and lastly, the tech heavy Nasdaq dropped as much as 3.95%. The fact that these indices were not able to effect even a small recovery indicates a deeper problem and would come a s a big reason to continue worrying about what will happen next in the near future. Europe was not in a much better situation with the broad STOXX 600 index dropping 3%.
The stocks that suffered the worst rout of them all were the once-favorites like Nvidia, which fell over 6%, Apple 4.4%, and Amazon. Microsoft was down 3.4% and Alphabet fell 2.5%.
“There are two things impacting pricing, one is the recession risk and that’s the main worry but on top of that there is a bit of anxiety around geopolitics and the expected retaliation from Iran and Hezbollah after the Israeli strikes,” Reuters quoted Samy Char, Chief Economist, Lombard Odier, as saying.
There were some soothing words too. ““We do not see the correction in risky assets as a start of a downturn. In our view, correction and clean up of positions does make sense,” Reuters quoted Mohit Kumar, Chief Economist for Europe, Jefferies, London as saying.
This was not the only such view. “The recession fears are overblown,” USA Today quoted Scott Wren, senior global market strategist at Wells Fargo as saying. “It’s not time to panic here,” he added.
There was a gainer too in the midst of all this mayhem. Pringles maker Kellanova soared 15.2% after it was reported that Mars may takeover the company.
For the rest, expectations are that Japan markets will wake up with a huge hangover on Tuesday because of the US stock market crash on Monday and the domino effect will continue across all the major stock markets, including Korea, Singapore, Hong Kong, India and more.
Stock market crash: After plunging over 1000 points in early trade, the Dow Jones carried the losses throughout the day. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
