Ruh roh, Raggy! Stock brokers woke Monday morning to find stock markets around the world crashing and experiencing extreme losses. In the United States, it's not quite Black Monday levels of panic. But the Dow Jones dropped 1,064 points, or 2.7%. This comes after a 611-point loss on Friday.
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Meanwhile the S&P 500 futures are down 4.6% after being down 1.8% on Friday. Nasdaq 100 futures were also down 4.8%. However, things are looking drastically dire in other markets across the globe. In Japan, the Nikkei 225 suffered its worse day since 1987. It dropped 12%. The stock market crashes in Asian countries are funneled by fears in the West.
Specifically, analysts believe that a disappointing July Jobs report in the U.S. played a role in the decline in the stock market. Many fear a U.S. recession. They've also called on the Federal Reserve to cut interest rate with rates currently the highest in two decades. Japan's stock market took a turn overnight with investors reacting to Friday's news for the first time.
It suffered a loss of 4,451.28 points on the index. It was the highest in its history. Tawain also suffered its worst losses since the 1960s in a devastating decline. Meanwhile, Europe's Stoxx was down 2.6% and Bitcoin tumbled by $10,000 in the course of just the weekend.
"It's painful," said Victoria Greene, chief investment officer at G Squared Private Wealth on CNBC's "Worldwide Exchange." "I think there's a lot being absorbed that happened over the weekend between Berkshire cutting Apple...you had the Japan sell-off... you have the yen spike and the end of that carry trade...You have a lot of bad news getting priced in."
"This is a pullback, a correction," she added. "We'll probably hit oversold at some point...rather quickly at these levels."
Stock Markets Tumble
This caps the third straight week of losses for the Nasdaq and S&P 500. Analysts agree that interest rates are too restrictive. Chicago Fed President Austan Goolsbee suggested that central banking will fix it. Global investors are concerned about the U.S. economy. They're risk averse and cryptocurrency took a big hit
Bitcoin was down 15$ and Ethereum was down 22%.
