Japan’s Nikkei Stock Average fell 12.8% in one day, having its worst day since 1987. The fall came after disappointing economic data in the United States, triggering a global selloff.
Stocks like Apple, Nvidia, and Alphabet took major hits with the S&P, Dow Jones, and Nasdaq sinking.
Apple fell 4.8% after Warren Buffet’s Berkshire Hathaway trimmed 10% of Berkshire’s Apple stake. Nvidia fell 6.4%, declining the stocks gain from 170% to 103% and Alphabet, a big tech giant, fell 4.4%.
All in all, the S&P 500 fell 160 points, the Dow sank to 38,703.27, and the Nasdaq composite tumbled to 16,200.08.
The global selloff following Japan’s Nikkei crash hit bitcoin the hardest, with its market cap plunging below $60,000.
Markets steadied on Tuesday, gaining in afternoon trading. Three major US stocks index’s rose 1.5% or more while Nikkei gained a 10% advance.
The CBOE Volatility Index showed assuring signs, falling to 28 after rising to above 60 on Monday.
Economic data that the Labor Department released showed job growth sharply slowing with the unemployment rate rising. This report sent markets into a tailspin last Friday leading to the Nikkei drop on Sunday night.
The Labor Department’s job report wasn’t the only red flag for Wall Street. The Institute for Supply Management reported that its measure of manufacturing employment deteriorated in July, helping the frenzy of selloffs.
Stocks in the US fell after the data was released, which reflects investors' worries about an economic slowdown.
Intel’s CEO, Patrick Gelsinger, also alarmed markets with plans to lay off 15,000 people after underwhelming quarterly sales. Intel’s shares fell 26% as a result.
The Trump campaign was ready to capitalize on the market’s volatility, shifting blame to the economic polices of the Biden-Harris administration.
The campaign named Nikkei and Wall Street’s historical drop in the market the “Kamala Krash”, quickly releasing an ad hitting Vice President Harris’s boasting of “Bidenomics.”
Trump released a statement on Truth Social saying, “Of course there is a missive market downturn. Kamala is even worse than Crooked Joe Biden.”
“Markets will never accept the radical left lunatic.” Said President Trump.
