• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Wall Street sentiment sours as Dow plummets over 700 points on recession fears

by August 2, 2024
written by August 2, 2024

The S&P 500 faced its worst session in nearly two years on Friday, spurred by recession fears following a surprisingly weak jobs report for July. 

The broad-market index fell by 1.8%, the Nasdaq Composite dropped by 2.2%, and the Dow Jones Industrial Average decreased by 729 points, or 1.8%. 

The sharp decline highlights growing economic concerns as investors brace for potential market turbulence.

Major indices plummet amid economic worries

The sharp decline in stocks was driven by the July job growth figures, which showed a slower-than-expected increase. 

The Labour Department reported that nonfarm payrolls grew by only 114,000 last month, a significant drop from the 179,000 jobs added in June and below the 185,000 anticipated by economists. The unemployment rate also rose to 4.3%, the highest since October 2021, further intensifying recession fears.

Several major technology companies suffered substantial losses during the day. Amazon’s second-quarter results failed to meet revenue estimates, and the company issued a disappointing forecast, resulting in a 12.5% drop in its stock price. 

This decline significantly impacted the consumer discretionary sector, which experienced its worst day since May 2022, when it fell by 6.6%.

Intel’s stock plummeted by 29% after the company announced weak guidance and planned layoffs. 

Nvidia also saw a decline of more than 5.5%, following a 6% loss the previous day. 

These losses were compounded by growing concerns about the high levels of artificial intelligence-related capital spending by Big Tech companies.

Bond market reacts to stock sell-off

As investors sought safety, the 10-year Treasury yield fell to its lowest level since December, settling at 3.82%. 

This shift towards bonds is seen as a natural course in a bull market experiencing a reversion after a steep uptrend. 

The week has been marked by significant volatility, with a heavy sell-off in the previous session affecting global stock markets. 

On Wednesday, the stock market rallied after the Federal Reserve hinted at a potential rate cut in September while maintaining current rates. 

The weak job figures reported on Friday have led many investors to believe that the central bank should have taken action sooner.

The recent stock market declines underscore the ongoing uncertainty in the economy. 

While some investors view the current downturn as a natural correction, others are concerned about the broader implications of weak job growth and rising unemployment. 

The upcoming Federal Reserve meeting in September will be closely watched for further indications of potential rate cuts and the central bank’s assessment of the economic landscape.

As the market continues to navigate these turbulent times, investors will need to remain vigilant and adaptable to changing conditions. 

The interplay between economic indicators, corporate performance, and central bank policies will be crucial in shaping the future direction of the market.

The post Wall Street sentiment sours as Dow plummets over 700 points on recession fears appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Dow closes nearly 500 points lower Thursday as investors’ recession fears awaken
next post
ARK Invest puts $21 million in 3iQ Ether ETF after major Coinbase stock sale

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • UK Labour Party staffers campaigning for Harris are volunteers, PM says, rejecting Trump interference claim

    October 23, 2024
  • Trump AG nominee Pam Bondi advances to final Senate vote

    February 4, 2025
  • TQQQ stock price prediction and other information

    September 3, 2024
  • Blinken may be held in contempt after House GOP advances measure

    September 24, 2024
  • Federal judge rules Trump’s firing of head of special counsel was unlawful, will maintain his job

    March 2, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,723)
  • Investing (624)
  • Stock (773)

Latest Posts

  • ‘DEI activism’: Republican AGs praise Trump SEC move to reverse Biden climate rule they fought in court

    February 12, 2025
  • Fox News Power Rankings: Harris ticks up and Senate Republicans take charge

    September 25, 2024
  • Inflation in China: Impacts and Expectations

    July 10, 2024

Recent Posts

  • Trump and Japan tech conglomerate SoftBank announce $100 billion in U.S. investments

    December 17, 2024
  • Biden is in charge of country on second straight vacation, White House insists

    August 27, 2024
  • Analysts see ‘enhanced buying opportunity’ as Apple rebounds but struggles to stabilize

    April 9, 2025

Editor’s Pick

  • Where Vance and Walz favorability ratings stand 60 days to Election Day

    September 5, 2024
  • Experts say first week of ‘Trump effect’ is derailing global climate movement’s ‘house of cards’

    January 25, 2025
  • Trump tax cut plan hits turbulence ahead of House vote as Republicans split

    February 24, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock