The FTSE 100, European and US stocks followed the market mood music on Monday, dipping following a selloff in global stocks last week. Moves lower, including a 12.4% dip for the Nikkei, have been partially triggered by lacklustre employment numbers published in the US on Friday and falling confidence in how the Federal Reserve has managed interest rates.
The FTSE 100 (^FTSE) fell 2.4% by the closing bell. Germany's DAX (^GDAXI) was down 2.4% and the CAC (^FCHI) dropped 2% in Paris.
The pan-European STOXX 600 (^STOXX) was 2.6% in the red.
Over in the US, the S&P 500 (^GSPC) fell 2.5%, the DOW (^DJI) dipped 2.4% and the tech-heavy Nasdaq (^IXIC) declined 2.7%. Indexes recovered somewhat having lost as much as 5% of their value earlier in the session.
Wall Street's "fear gauge" — the CBOE Volatility Index (^VIX) — soared, reaching its highest level since the early days of the COVID-19 pandemic. US treasury yields plummeted, with the benchmark 10-year treasury yield (^TNX) sinking below 1.1%.
Two companies that were especially feeling the heat on Monday were Nvidia (NVDA) and Apple (AAPL). The Nasdaq's chip darling dropped 11% at the opening bell — later trading around 5.5% lower, while the iPhone maker was 3.4% lower after Berkshire Hathaway nearly halved its stake.
Employment figures published on Friday spooked US investors, pushing the three major indexes lower as market watchers speculated that the Federal Reserve has left it too late to cut its key interest rate. The Nasdaq is now in correction territory, more than 10% below its recent high in early July.
The data showed the US economy added 114,000 jobs in July, when economists had expected 175,000. The unemployment rate stands at 4.1%.
The Nikkei's dip was partly sparked by the Japanese central bank raising its key interest rate on Wednesday.
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