(StraightShooterNews.com) – Wall Street is bracing for a severe downturn today, as stock futures indicate a sharp drop due to mounting concerns about the strength of the U.S. economy.
Before the market opened, Dow Jones Industrial Average futures had tumbled by 1,200 points.
Nasdaq 100 futures dropped nearly 5% as the tech-centric index felt the aftermath of significant losses last Friday. S&P 500 futures also fell sharply, nearly 3%.
Often referred to as Wall Street’s “fear gauge,” the CBOE Volatility Index spiked to levels not seen since the beginning of the COVID-19 pandemic.
Meanwhile, yields on 10-year Treasury bonds dropped below 3.8%, signaling growing investor anxiety.
This sell-off comes in the wake of a disappointing U.S. jobs report from Friday, which worsened existing concerns about the economy and doubts about the Federal Reserve’s timing on interest rate cuts.
According to the CME FedWatch tool, market watchers almost unanimously expect the Fed to lower rates by 0.5% at its September meeting.
As the trading day begins, major companies are bracing for significant losses. Apple’s stock value is expected to drop more than 6% following news that Berkshire Hathaway had scalеd back its investment in the tech giant by half.
Nvidia was looking at a 10% decrease, keeping a downward trend, while Tesla was expected to plunge over 8%.
The cryptocurrency market was not spared, with Bitcoin tumbling more than 15%, going back toward the $50,000 mark.
On the global landscape, there are also concerns in Asia, where Japan’s Nikkei 225 suffered a historic fall after losing over 12% in its largest single-day loss ever.
The commodities market also felt the strain, with West Texas Intermediate crude futures approaching yearly lows at about $72 a barrel.
As the U.S. heads into a week lightеr on economic data and earnings reports, the spotlight will be on the labor market.
This will happen particularly with the upcoming releasе of weekly unemployment claims on Thursday.
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