Live Stock Market
Crash: US stocks plummet in the first trading hour! Investors in Indian stocks
lose Rs. 15 lakh crore .
Stock Market Crash LIVE: The major Indian equity
indices, the BSE Sensex and Nifty50, fell sharply during trading on Monday due
to a sell-off in global markets, which was sparked by concerns about a
potential US economic recession in the upcoming quarters.
Monday saw a significant decline in U.S. stocks as
part of a sell-off in global markets driven by worries of a U.S. recession. In
what was Japan's worst day since Wall Street's Black Monday disaster in 1987,
the Nikkei 225 fell 12%. The 2.7% decline in the Dow Jones Industrial Average
was 1075 points. The S&P 500 fell 3.1%, and the Nasdaq Composite fell 3.6%.
The blue-chip Dow experienced a 1200 point decline earlier. Following Friday's
dismal July jobs report, the main cause of the worldwide market meltdown was
fears of a U.S. recession. Investors are also worried about the Federal
Reserve's perceived lack of progress in supporting an economic downturn by
lowering interest rates; last week, the central bank decided to maintain rates
at their highest level in 20 years.
The once-hot
artificial intelligence trade and megacap tech equities are still being sold
off by investors. On Monday, tech equities were among the worst performers:
After falling more than 23% from its recent peak before the session began,
Nvidia fell more than 5% on Monday. Following Berkshire Hathaway's 50%
ownership decrease by Warren Buffett, Apple had a nearly 4.6% decline in value.
Broadcom and Super Micro Computer, down 7% and 12%, respectively, and Tesla,
down 5.8%, were among the other losers.In the S&P 500, only nine equities
saw daily gains.
Asia-Pacific investors had their first opportunity
to respond to the negative jobs report from the United States on Friday, and
overnight, Japan equities confirmed a bear market. It was the worst day for the
index since Wall Street was devastated by "Black Monday" in 1987,
when the Nikkei lost 12.4% and finished at 31,458.42. It was also the greatest
point drop in the index's history, with 4,451.28 lost. Black Monday was the
first day that the Dow fell more than 22%. Significant damage was also done to
other international markets:
As investors flocked to bonds as a worldwide safe
haven amid fears of a recession, U.S. Treasury yields fell. The relationship
between yields and bond prices is inverse." Monday saw the benchmark
10-year note's yield drop to 3.7%, the lowest since June 2023. From Friday's
close to $62,000 to Monday's roughly $52,000, bitcoin fell sharply. Europe's
Stoxx 600 was 2.4% lower. After peaking at 53, the highest point since the
early stages of the pandemic in 2020, the CBOE Volatility Index was last
trading at 46. Talk of the yen "carry trade" winding down is also
circulating, which is contributing to the sell-off in the world market
following the Bank of Japan's rate hike last week that narrowed the interest
rate gap between the US and Japan.
This has led
to the yen's appreciation against the dollar and put a stop to traders'
practice of borrowing the cheap money to purchase other international assets.
"The cemetery could be heard humming from the market. The market was
extremely susceptible to a correction, and the less positive than anticipated
economic and job data served as the impetus for it, according to Sam Stovall,
chief financial analyst at CFRA Research. "I think people were basically
lulled into a sense of security," Stovall said. Currently, the S&P 500
is down almost 8% from its peak. Chicago Fed President Austan Goolsbee
suggested on CNBC's "Squawk Box" on Monday that interest rates at the
current level might be too "restrictive," even if he refrained from
committing to a particular course of action.
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