Wall Street Woes: Stocks and Crypto Fall Sharply
Dow, S&P 500, and Nasdaq-100 Futures Plunge Sunday Night
U.S. stock-market futures fell late Sunday following a turbulent week on Wall Street, during which the Nasdaq entered correction territory.
As of 11 p.m. Eastern, Dow Jones Industrial Average futures dropped over 250 points, or 0.7%. S&P 500 futures decreased by 1.4%, and Nasdaq-100 futures fell 2.4%. All showed slight improvements from their session lows late Sunday.
Crude oil futures rose slightly amid concerns over escalating hostilities in the Middle East. Cryptocurrencies also fell, with Bitcoin dropping 8% to below $55,000 after reaching over $65,000 on Friday. Ether dropped more than 15%.
Japan’s Nikkei 225 plunged 5%, continuing the previous week’s trend, as global markets reacted to recent U.S. economic data and Wall Street’s losses.
U.S. stocks fell on Friday after a weaker-than-expected jobs report raised concerns about economic growth. This followed Fed signals on Wednesday indicating potential interest rate cuts in September. However, investors worry these cuts might come too late to prevent a recession.
Last week, all three major indexes experienced significant losses. The S&P 500 had its worst week since April, falling 2.1%. The Dow also dropped 2.1%, and the Nasdaq saw a 3.4% decline, ending 10% below its July 10 record close, placing it in correction territory.
Stephen Innes, managing partner at SPI Asset Management, noted, “Market participants scrambled for hedges amidst growing panic over interest rates and a looming recession. The spike in volatility underscores how jittery markets have become.” He added, “The real question is whether the typical market reflex to sell volatility or buy the dip can overcome the anxiety from this sudden recession scare.”
Investors might brace for further declines in tech stocks on Monday after Warren Buffett’s Berkshire Hathaway revealed it reduced its Apple stake by nearly 50% last quarter. Tech stocks have struggled recently, highlighted by Intel, whose stock plunged 26% on Friday following disappointing earnings.
