Wall Street: Worst day for US stocks since 2022; Dow sinks over 1,000 points – Times of India

US equities plummeted on Monday, with the Nasdaq and S&P 500 each losing at least 3%, extending the previous week’s sell-off amid concerns of a potential US recession and a significant decline in Apple shares following news that a major investor had reduced its stake in the company.
The Nasdaq, S&P 500, and Dow Jones Industrial Average all experienced their most substantial three-day percentage drops since June 2022, with the Nasdaq and S&P 500 closing at their lowest levels since early May.
The Dow Jones Industrial Average suffered a substantial decline of 2.6 percent, equivalent to a loss of over 1,000 points, closing at 38,703.27. Similarly, the S&P 500, which represents a wide range of companies, fell by 3.0 percent, concluding the day at 5,186.33. The technology-focused Nasdaq Composite Index also encountered considerable losses, plummeting 3.4 percent to finish at 16,200.08.
The recession fears, triggered by weak economic data from the previous week, including a disappointing U.S. payrolls report on Friday, rattled global markets and prompted investors to flee risky assets.
Investors are concerned that the economy is losing momentum faster than expected and that the Federal Reserve made a mistake by maintaining interest rates at its most recent policy meeting. Apple shares dropped 4.8% after Berkshire Hathaway reduced its stake in the company by half, while billionaire investor Warren Buffett allowed Berkshire’s cash holdings to soar to $277 billion. Other major tech companies, such as Nvidia, Microsoft, and Alphabet, also experienced declines.
The Chicago Fed President, Austan Goolsbee, played down recession fears but emphasized that Fed officials must be aware of changes in the economic environment to avoid being overly restrictive with interest rates. Neville Javeri, a portfolio manager at Allspring, attributed the sell-off to an extension of the anxiety felt last week, stating that “it started off with the jobs data last week, and it clearly led to the belief that the Fed needs to start being more proactive around where those unemployment numbers are going.”
(With inputs from agencies)