The U.S. stock market experienced its worst day since the COVID-19 pandemic on August 2, 2024, with $2.9 trillion in equities liquidated. This dramatic sell-off was triggered by a disappointing jobs report and rising concerns about a global recession.
The Dow Jones Industrial Average closed down over 600 points, having been nearly 1000 points down at its lowest. The Nasdaq saw a decline of over 400 points. Leading technology stocks were hit hard, with Microsoft and Nvidia falling over 2% and 5%, respectively. Communication giants Alphabet and Meta Platforms also suffered significant losses, dropping by 2.7% and 3.3%.
Consumer cyclical stocks faced severe declines, with Amazon plummeting 11% and Tesla decreasing by 1.92%. The financial sector was not spared, with JPMorgan Chase and Berkshire Hathaway down 1.45% and 1.84%, respectively.
The healthcare industry showed mixed results, with Novo Nordisk rising 3.23% while Eli Lilly fell by 4.14%. Consumer defensive stocks, usually resilient during downturns, also saw declines, with Coca-Cola and Procter & Gamble dropping 0.92% and 1.66%.
Utilities and energy sectors were heavily affected, with significant losses for Exxon Mobil and Chevron. The widespread market downturn has intensified fears of an economic recession, further fueled by the substantial market value fluctuation of over $3 trillion in major IT companies in recent weeks.
Global markets were also unsettled by the mounting concerns, with a sell-off in Europe and Asia following the poor U.S. employment report that indicated a rapidly cooling jobs market and rising unemployment rate.
