US stocks open week with major losses amid recession fears

By Ovunc Kutlu

ISTANBUL (AA) - Major stock exchanges in the US opened Monday with major losses as recession fears continue in global stock markets.

The Dow Jones plummeted 931 points, or 2.3%, to 38,836 at 10.05 a.m. EDT (1400GMT). The blue-chip index lost 610 points, or 1.51% on Friday.

The S&P 500 fell 135 points, or 2.53%, to 5,211. On Friday, the index declined 100 points, or 1.84%.

The Nasdaq, meanwhile, dove 600 points, or 3.6%, to 16,174. The tech-heavy index on Friday fell almost 418 points, or 2.43%.

Although job market figures in the US signaled a cooling labor market and increased the likelihood of a rate cut by the Federal Reserve in September, investors are worried that the central bank could be too late in easing its monetary policy, pushing the US economy into a recession.

The VIX volatility index, also known as the fear index, jumped 81% to 42.11. The 10-year US Treasury yield declined 1.35% to 3.736%.

The dollar index fell 0.6% to 102.59, while the euro rose 0.55% to $1.0971 against the greenback.

Precious metals were also in the red, with gold losing 2.2% to $2,389 per ounce and silver decreasing 5.3% to $27.05.

Oil prices were down around 1%, with global benchmark Brent crude priced at $76.11 per barrel and US benchmark West Texas Intermediate at $72.70.