Market Panic as $2.9 Trillion in Equities Wiped Out Due to Recession Fears

On August 2, 2024, the U.S. stock market suffered a severe blow, with $2.9 trillion in equities liquidated. This marks the worst trading day since the COVID-19 pandemic, driven by a disappointing jobs report and rising fears of a global recession.

The Dow Jones Industrial Average dropped over 600 points, while the Nasdaq fell by more than 400 points. Technology giants were significantly affected, with Microsoft and Nvidia falling over 2% and 5%, respectively. Alphabet and Meta Platforms also saw notable declines of 2.7% and 3.3%.

Amazon experienced an 11% plunge, and Tesla saw a 1.92% decrease. The financial sector also faced losses, with JPMorgan Chase down 1.45% and Berkshire Hathaway down 1.84%. Healthcare stocks showed mixed results, with Novo Nordisk rising 3.23% while Eli Lilly fell 4.14%.

Consumer defensive stocks, which are typically stable during economic downturns, were not immune. Coca-Cola and Procter & Gamble dropped by 0.92% and 1.66%, respectively. The energy sector also experienced significant losses, impacting companies like Exxon Mobil and Chevron.

This extensive market downturn highlights the widespread nature of recession fears, with major IT companies experiencing significant market value fluctuations. The global impact was clear, with European and Asian markets also reacting negatively to the U.S. jobs report and increasing unemployment.