US stocks take a nosedive Monday amid recession fears

By Ovunc Kutlu

ISTANBUL (AA) - US stocks closed Monday with major losses as recession fears continue in global markets.

The Dow Jones plummeted almost 1,034 points, or 2.6%, to finish the day at 38,703. The blue-chip index lost 610 points, or 1.51% on Friday.

The S&P 500 fell 160 points, or 3%, to 5,186. On Friday, the index declined 100 points, or 1.84%.

The Nasdaq, meanwhile, dove 576 points, or 3.43%, to 16,174. The tech-heavy index on Friday fell almost 418 points, or 2.43%.

Although job market figures released Friday 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 59% to 37.20. The 10-year US Treasury yield declined 0.45% to 3.770% – its lowest level since July 2023.

The dollar index fell 0.5% to 102.67, while the euro rose 0.45% to $1.0958 against the greenback.

Precious metals were also in the red, with gold losing 1.4% to $2,408 per ounce and silver decreasing 4.7% to $27.22.

Oil prices were up around 0.4%, with global benchmark Brent crude priced at $77.14 per barrel and US benchmark West Texas Intermediate at $73.76.