Global Stock Markets Plunge Amid US Economic Concerns

the staff of the Ridgewood blog

Ridgewood NJ, “When America Sneezes, the World Catches Cold” , Global stock markets experienced a significant downturn yesterday, driven by fears of a slowing US economy following a weaker-than-expected US jobs report. The report revealed a slowdown in hiring and a rise in unemployment to its highest rate in nearly three years. This data triggered the “Sahm Rule,” a historically accurate recession indicator that activates when the three-month average unemployment rate rises 0.5 points above its 12-month low.

The US Influence on Global Markets

Given that the US accounts for nearly a quarter of global gross domestic product, its economic health has a substantial impact on global markets. The Dow Jones Industrial Average fell by 2.6%, while the Nasdaq composite and S&P 500 declined by 3.4% and 3.0%, respectively.

The Domino Effect

The global decline began with Japan’s Nikkei 225 index, which plummeted over 12%—its largest single-day percentage drop since 1987. European markets followed suit, with major indexes dropping around 3%. The turmoil also extended to the cryptocurrency market, with Bitcoin falling over 10%.

The Magnificent Seven’s Impact

Separately, losses in the “Magnificent Seven” tech stocks—comprising the most influential technology companies—wiped out more than $650 billion from their combined market value.

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