Stocks around the globe have plummeted wiping off an estimated $2.9 trillion (£2.27 trillion) from the markets today, according to a financial expert.
Writing on X, Financial Analyst and Value Investor Jacob King wrote: “Over $2.9 trillion has been wiped out from major indices and stocks this morning due to growing fears of a global recession. This is the worst day for stocks since March 16, 2020, during the COVID-19 pandemic fears.”
The slump affected markets in Europe, Asia and New York on Friday, August 2, as fears the US may be on the brink of a recession sparked a global sell-off.
This skyrocketed after an employment report was published later on the same day, showing the US jobs market had grown less than expected in July and was pushing up in turn the unemployment rate – at its highest since October 2021.
The report boosted the market fears that had already emerged earlier this week following data showing weakness in the US manufacturing sector and disappointing results from semiconductor producer Intel.
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The Friday slump meant the S&P 500 index, which tracks the stock performance of 500 of the largest companies listed on stock exchanges in the US, headed for its worst session in around two years.
Among the other stock market indices across the pond, the tech-heavy Nasdaq Composite lost 2.6 percent while the Dow Jones Industrial Average dropped 2 percent – or 820 points.
The major names in tech to experience big slumps today included Amazon, which slid 12.5 percent after missing Wall Street’s revenue estimates and issuing a disappointing forecast.
Intel fell 29 percent, while Nvidia lost more than 5.5 percent – which came after another disappointing day during which it lost 6 percent.
LPL Financial chief technical strategist Adam Turnquist told CNBC the slump seen on Friday was a “natural course” following the previous steep uptrend.
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