Dow Drops More Than 1,000 Points As Global Markets Plunge Amid Recession Fears

The U.S. market got off to a rocky start on Monday, with the Dow plunging more than 1,000 points as global markets dropped amid growing concerns about a U.S. recession. 

The Dow Jones Industrial Average dropped by as much as 1092 points Monday morning and was hovering around a 2.5% drop by 10:43 am EST. The NASDAQ fell by as much as 4.1%, while the S&P 500 dropped by as much as 3.3%. The U.S. market collapse followed markets around the world, from Asia to Europe, with Japan’s Nikkei 225 dropping more than 12%. 

The struggles followed a report from the Bureau of Labor Statistics showing that U.S. unemployment in July reached its highest point since October 2021. The report showed that unemployment rose to 4.3% while just 114,000 non-farm jobs were added last month, far less than the 185,000 expected by analysts. 

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“The market was whistling past the graveyard. I think people were basically lulled into a sense of security, yet the market itself was very vulnerable to correction — and the weaker than expected economic and employment data provided that catalyst for correction,” CFRA Research chief investment strategist Sam Stovall said. 

Stocks in tech companies and artificial intelligence have seen some of the steepest drops. On the S&P 500, the tech industry was down by around 4%, while real estate was down more than 1%. 

Both the S&P 500 and the NASDAQ Composite are reportedly on track for their worst August in more than two decades, according to Market Watch. Over the past three days, S&P has been down 6.4%, and NASDAQ has been down 8.58%. Both are tracking for the worst August since 2002. 

The Wall Street Journal reported that Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla combined lost around $753 billion in market capitalization as of Monday morning. 

JP Morgan analysts now predict a 50-50 chance of a recession, while Goldman Sachs believes there is a 25% chance of recession in the next year. 

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The market crashes have triggered comments from former President Donald Trump, who said that the Biden-Harris administration was to blame for the collapse. 

“Of course there is a massive market downturn. Kamala is even worse than Crooked Joe. Markets will NEVER accept the Radical Left Lunatic that DESTROYED San Francisco and California, as a whole,” Trump posted on Truth Social. “Next move, THE GREAT DEPRESSION OF 2024! You can’t play games with MARKETS. KAMALA CRASH!!!”