Futures on Wall Street are plummeting due to recession fears triggered by disappointing macroeconomic data from last week, including July’s employment report released on Friday. Investors are concerned that the Federal Reserve may have delayed rate cuts for too long and might need to take corrective measures in its September meeting. The escalating conflict in the Middle East has also contributed to market volatility, with the Cboe Volatility Index reaching its highest level since the onset of the COVID-19 pandemic.
Technology giants are taking a significant hit, exacerbated by underwhelming quarterly reports. In pre-market trading, Nvidia is down 14.5%, Super Micro Computer 15.1%, Micron Technology 8.2%, and Broadcom 10.5%. Apple is losing 9.1% following news that Warren Buffett’s Berkshire Hathaway sold nearly half its shares in the Cupertino-based company during the second quarter.
With investors seeking safer assets, the 10-year Treasury yield has dropped to below 3.7% from 4.1% a week ago. Bitcoin has also been affected, falling below $50,000 for the first time since February. Currently, Dow Jones futures are down 1,045 points (-2.62%), S&P 500 futures are down 208 points (-3.87%), and Nasdaq futures are down 977.50 points (-5.26%). Meanwhile, WTI crude oil at Nymex is down 2.3% at $71.83 per barrel.
Tokyo Stock Exchange Sees Record Decline Amid US Recession Fears and Yen Appreciation
The Tokyo Stock Exchange has experienced its largest daily drop ever, driven by fears of an imminent US recession and the appreciation of the yen. The benchmark Nikkei index fell by 12.40%, closing at 31,458.42, a loss of 4,458.42 points. The Japanese yen has strengthened against both the dollar, reaching 142.20, and the euro, at 154.90.
