US stocks tumble on fears over slower growth

alkhabrfdakika
5 Aug, 2024

 

U.S. stocks fell on Monday after falling in Europe and Asia on fears that the U.S. economy is headed for a recession.  

The tech-heavy Nasdaq Index opened 6.3% lower after a slump at the end of last week, but pared its losses on the day.  

Other major indices of the United States opened on the rise, while stock markets in Europe and Asia fell, and the Japanese Nikkei 225 was down 12.4%. This comes after weak US jobs data on Friday raised concerns about the world's biggest economy.  

The Federal Reserve stopped cutting interest rates last week - which boosts growth - unlike other central banks such as the Bank of England.  

There are concerns that the stocks of major technology companies, especially those that invest heavily in artificial intelligence (AI), are overvalued and currently facing problems.  

chip maker Intel announced major layoffs and disappointing financial results last week, and rival AI chipmaker Nvidia is expected to delay production of its latest. direct sales:

  • The Dow Jones index, which includes the 30 largest companies in the United States, fell 2.7% after paring losses, while the tech-heavy Nasdaq fell 4% and the S&P 500 fell 3.2%. 
  • The major tech markets fell sharply, with Nvidia down 7%, Amazon down 4.3% and Apple down 7%. 
  • In Europe, the Paris CAC-40 made up an early loss of 1.4%, while Frankfurt's DAX and the UK's FTSE 100 lost 2%.
Doubts about US economy
Market turmoil began on Friday after weaker-than-expected US jobs data fueled speculation that the economy was slowing.  
 US workers added 114,000 jobs in July, which was below expectations, while the unemployment rate rose to 4.3% from 4.1%. 
 The numbers raise concerns that long-term jobs in the United States could be lost. It fueled speculation about when — and by how much — the Federal Reserve will cut interest rates.  
Simon French, chief economist at Panmure Liberum, said it was not clear whether the negative job numbers were due to Hurricane Beryl, a Category 5 storm that hit the US Gulf Coast in July, or because the first sign was and the company hired a few. employees. The latest data shows that the US economy grew by 2.8% in the last three months of June, stronger than that of developed countries. Shanti Kelemen, chief investment officer at M&G Wealth, told the alkhabrfdakika Today that it is difficult to say whether the US is headed for recession. "You can cherry-pick evidence to create a good story and create a bad story," he said. 
 "I don't think it points in a general direction." In , the crisis in the American stock market spread throughout the world, and in , the fear of spreading. 
While the Nikkei fell in Japan, Taiwan, South Korea, India, Australia, Hong Kong and Shanghai fell 1.4 percent. and 8% on Monday.  
Part of Japan's problem stems from its currency, the yen, which has strengthened against the US dollar since the Bank of Japan raised interest rates last week. This made Tokyo assets—and Japanese goods in general—more expensive for foreign investors and buyers.  
At the same time, Japanese inflation rose more than expected in June, as the economy contracted in the first three months of the year.

alkhabrfdakika

alkhabrfdakika

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