OAN Staff Brooke Mallory
3:52 PM – Friday, August 2, 2024
Concerns of an impending recession are noticeably affecting the U.S. stock market, as a majority of stocks have had large sell-offs.
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In a startling setback to the markets, $2.9 trillion in equities was liquidated during the early trading hours of August 2nd due to a recent jobs report and growing concerns of a worldwide recession. The severe sell-off makes Friday the worst since the COVID-19 pandemic in 2020.
“The market heat map paints a grim picture, with deep red dominating most sectors. Leading technology stocks, such as Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA), have plunged by over 2% and 5%, respectively. Communication services giants like Alphabet (NASDAQ: GOOG) and Meta Platforms (NASDAQ: META) also saw significant declines, falling by 2.7% and 3.3%.,” finbold.com reported.
Consumer cyclical equities were also hammered hard, with Amazon (NASDAQ: AMZN) plunging 11% to suffer a severe loss. Tesla (NASDAQ: TSLA) saw a noteworthy 1.92% decrease as well. Major losses were also seen by the financial sector, with JPMorgan Chase (NYSE: JPM) and Berkshire Hathaway (NYSE: BRK-A) falling 1.45% and 1.84%, respectively.
The healthcare industry, which is typically thought of as a safe haven in times of market turbulence, saw uneven results. Certain firms, such as Novo Nordisk (NYSE: NVO), showed resilience with a modest rise of 3.23%, whilst Eli Lilly (LLY), had a decline of 4.14%.
Additionally, consumer defensive stocks, which are usually thought to be more resilient during economic downturns, were not spared either. Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG) both had decreases of 0.92% and 1.66%, respectively.
Utilities and energy sectors faced major losses as well, negatively affecting companies like Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), which experts say indicates “the widespread nature of the market downturn.”
The movement of the “Magnificent 7” IT giants earlier in the day served as a reminder of the ongoing sell-off. According to Finbold’s analysis, these corporations have had a market value fluctuation of more than $3 trillion in the last three weeks, adding to the growing fears regarding the potential for an economic downturn.
Investors in Europe and Asia were similarly unsettled by the mounting worries. There are broad worries that the U.S. may be heading into a recession, which sparked a sell-off around the world that grew stronger after an unsatisfactory employment report showed that the jobs market was cooling quickly, increasing the unemployment rate.
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