Stock Market Today: Dow, S&P 500, Nasdaq Slide Amid Global Selloff
A stock-market selloff extended around the world, with U.S. indexes sliding and volatility spiking.
In early trading, the Nasdaq Composite tumbled more than 3%. The S&P 500 and the Dow both fell more than 2%. Stock indexes and Treasury yields pared some declines after service-sector data came in better than expected.
Turbulence started in Japan, with the Nikkei 225 falling more than 12%, its worst one-day drop since the crash after Black Monday in 1987. Losses cascaded across Europe and the U.S., as investors dumped riskier assets.
The declines extended what has been a dizzying few days on Wall Street during which this year’s most popular trades have been aggressively unwound. A selloff in tech shares continued Monday, with Nvidia, Meta and Apple each falling 4% or more. (The iPhone maker took an extra hit from news that Berkshire Hathaway had slashed its Apple stake.)
Concerns about a slowing U.S. economy are front and center after job growth slowed sharply in July. Investors are worried that the Federal Reserve has moved too slowly and will need to play catch up in cutting rates.
Around the world, investors rushed for the safety of the bond market. The 10-year U.S. Treasury yield recently traded around 3.77%, down from over 4.1% a week ago.
The VIX, considered Wall Street’s fear gauge, jumped before paring back somewhat.
Japanese stocks were among the hardest hit globally, with a tumble in SoftBank shares weighing. Elsewhere, South Korea’s benchmark Kospi sank 8% and the Stoxx Europe 600 fell around 3%.
The yen leapt against the dollar, amplifying a trade that started to take hold last month.
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