Markets in Asia rebounded after global declines on Monday amid fears the US could be in recession.
TaiwanThe New York Stock Exchange rose after a record drop the previous day, but gave up some of its gains late in the morning amid lingering concerns about the outlook for the U.S. economy and technology companies.
JapanThe benchmark Nikkei 225 stock index rose nearly 11% after plunging yesterday to a near-record 12.4% – the biggest drop since “Black Monday” in October 1987.
Indian government bond yields are expected to remain stable, although South KoreaThe company’s Kospi rose nearly 3% after falling on Monday for the biggest drop since late 2008.
The rebound in Asian markets followed a dramatic day on Wall Street on Monday.
All major US stock market indices fell at the open and continued to fall until the close.
The Nasdaq Composite – an index heavily composed of technology companies – ended down 3.4%, at its lowest level since the beginning of May.
The US index containing companies expected to be stable and profitable, the S&P 500, fell 3%, its worst day since September 2022.
Likewise, the index of the 30 main companies listed on US stock exchanges, the Dow Jones Industrial Average (DJIA), ended the day with a drop of 2.6%.
The declines came from all-time highs, however. The declines in the Nasdaq and Dow Jones follow new records set in July. The S&P is coming off a February record.
Behind the drop are seven high-performing technology companies, the so-called Magnificent Seven: Apple, Google parent Alphabet, Amazon, Meta, Microsoft, AI microchip maker Nvidia, and electric car maker Tesla.
The sales were not limited to just the stock markets. The cryptocurrency Bitcoin has reached a level not seen since February. One Bitcoin is now worth $54,650.
Read more about business:
Cut in electric car sales forecast
Shocking moments from the Correios investigation
Pret founder toasts beverage maker Knoops
The UK’s FTSE 100 closed down more than 2% on Monday, its worst day since July 2023. The FTSE 250 also fell at the open and was down 2.83% by the end of trading.
Other exchanges in Europe, including France, Germany, Portugal and Spain, it also fell between 2% and 4%.
This comes after Friday’s US labor market data was released much lower than expected for Julycausing the country’s stock markets to fall.
The US Federal Reserve also decided last week not to cut interest rates from the 5.25% to 5.5% range in which they have remained since July last year. Markets expect the central bank to make a cut in September.
This resulted in economists at Goldman Sachs saying they believed there was now a 25% chance of a US recession, up from the previous estimate of 15%.
JPMorgan analysts were more pessimistic, estimating the probability of a recession at 50%.
Global concerns have also been compounded by worries about the strength of China’s economy and several reports of weak earnings from big technology companies last week as investors grow nervous about the potential returns on investment in AI.
This story originally appeared on News.sky.com read the full story
