Fears of a U.S. Recession Spark a Selloff in Major Markets

What We're Showing

An overview of how major indices have fared in recent days, as well as the VIX, which represents the market's expectations for volatility over the next 30 days.

Key Takeaways

• Jitters over weaker-than-expected jobs numbers in the U.S. last week have carried over into this week resulting in a selloff in the global market
• The U.S. economy remains strong by many measures, but recession fears are building. Also contributing to unease is the Fed's decision not to cut rates last week, which ran counter to expectations
• Japan's Nikkei 225 took the biggest hit, plunging 12% in a single day (Aug 5, 2024). Other Asian markets also took a hit, with Taiwan seeing the biggest single-day percentage drop in that market's history, and circuit breakers being activated in South Korea's market
• The Fear & Greed Index has now swung into the "extreme fear" category