U.S. stocks took a nosedive on Monday amid a worldwide stock market selloff as fears of a possible U.S. recession have mounted in recent days.
The Dow Jones Industrial Average dropped 1,072 points, or 2.7 percent, soon after the market opened on 9:30 a.m. ET, following a 611-point loss on Aug. 2. The S&P 500 dropped 4.1 percent, and the Nasdaq Composite sank by 6.3 percent moments after the opening bell.
By 3 p.m. the Dow was still down more than 1,000 points, or about 2.6 percent, while the Nasdaq was down 3.8 percent. The S&P 500, meanwhile, posted 3.2 percent decline.
The Dow Jones’s worst drop in history in terms of points came during the onset of the COVID-19 pandemic, in early 2020. At that time, it plunged 2,997 points on March 16, 2020, or 12.9 percent.
Other than the Great Depression’s start in 1929, the worst U.S. stock market crash came on Oct. 19, 1987, when the Dow Jones plunged 22.6 percent in what is now known as “Black Monday.”
Nvidia dropped more than 7 percent Monday, down about 21 percent in the past month. Apple dropped 5 percent as Warren Buffett’s Berkshire Hathaway cut its stake in the company. Broadcom was down 7 percent, and Super Micro Computer was down 12 percent. Elon Musk’s Tesla also dropped 10 percent.
Already on Monday, Japan’s Nikkei 225 index nosedived about 12 percent, the worst rout in its history, Japan’s Topix index fell 12.2 percent. Yields on U.S. government bonds hit multi-month lows, with the 10-year note last at 3.68 percent, while the two-year slipped to 3.69 percent.
A weak jobs report from the U.S. Department of Labor last week coupled with shrinking manufacturing activity in the world’s largest economy as well as dismal forecasts from top U.S. technology companies pushed the Nasdaq 100 lower as well.
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