On Monday 5th August 2024, stocks plummeted, marking the Dow Jones Industrial Average’s worst performance in nearly two years, igniting a worldwide market downturn due to concerns about the U.S. economy’s stability.
The Dow fell 1033.99 points closing at 38703. The Nasdaq Composite dropped to close at 16200, while the S&P 500 declined 3%, ending the day at 5186. Both the Dow and S&P 500 experienced their most significant daily losses since September 2022.
Dow 1 day and 5 day charts
The Japanese stock market suffered its steepest fall since Black Monday of 1987, adding to the global market anxiety.
The primary driver of the worldwide market collapse was the fear of a U.S. recession, triggered by the disappointing July jobs report released on Friday.
Additionally, there is growing concern among investors that the Federal Reserve has delayed reducing interest rates to support the slowing economy.