From Investing.com: 2024-08-05 15:12:33

Major U.S. stock indexes plunged on recession fears, with the Nasdaq dropping more than 3%. Apple shares fell 4.4% after Berkshire Hathaway cut its stake in the company. Chicago Fed President downplayed recession worries, but caution is needed. The S&P 500 lost 2.48%, the Nasdaq dropped 3.36% and the Dow fell 2.85%.

Tumbling U.S. Treasury yields and a shift in interest rates suggest an economic downturn. Traders predict a 92.5% chance of a 50 basis point rate cut in September. A potential buyout of Pringles maker Kellanova by Mars boosted shares by 15.2%. The VIX “fear gauge” spiked as the market braced for further turbulence.

Weak jobs data, disappointing forecasts, and a correction in tech stocks contributed to the market sell-off. The Magnificent Seven tech stocks are set to lose nearly $900 billion in market value. Traders unwinding carry trades added downward pressure. The Nasdaq confirmed it was in correction territory.



Read more at Investing.com: Major indexes sink amid US recession fears, drop in Apple shares By Reuters