Global stock markets fall sharply as worries grow over US recession

finance
Created 8/5/2024
Updated 8/5/2024

Global stock markets plunged as fears of a potential US recession triggered a massive sell-off. Japan's Topix experienced its worst day since 1987, falling 12.2%, while major US indices, like the Nasdaq and S&P 500, also saw significant losses. The Vix index, a measure of market volatility, soared to levels not seen since the pandemic. Concerns are rising that the USA Federal Reserve might have to quickly cut interest rates to counteract the economic downturn. Additionally, the yen's strengthening and the unwinding of risky trades exacerbated the market chaos. Notable tech stocks, including Nvidia, Apple, and Tesla, faced sharp declines.

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