| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38703.27 | -1033.99 | -2.60% |
| S&P 500 | 5186.33 | -160.23 | -3.00% |
| Nasdaq | 16200.08 | -576.08 | -3.43% |
| VIX | 38.57 | 15.18 | 64.90% |
| Gold | 2452.50 | 8.10 | 0.33% |
| Oil | 74.11 | 1.17 | 1.60% |
US MARKET
U.S. stocks dropped sharply on Monday amid economic concerns and a weak jobs report. The Dow fell 2.6%, the S&P 500 lost 3%, and the Nasdaq slid 3.4%.
Caesars Entertainment’s shares dropped 6.9% after a revenue miss, while Walgreens fell 6.6% following a major stake sale announcement.
Etsy declined 6.6% after a downgrade, and Intel’s shares fell 6.4% due to poor earnings and job cuts.
On the positive side, Kellanova soared 16.2% on news of a potential Mars acquisition, Tyson Foods rose 2.1% on strong results, and CrowdStrike gained 1.9% despite Delta Air Lines’ compensation claims.
LOCAL MARKET
The Australian stock market recorded its sharpest decline in over four years, driven by fears of a U.S. recession and global selling.
The S&P/ASX200 index plummeted by 3.7% to 7,649.6, marking its largest fall since May 2020 and losing $160 billion in two days. Similarly, the All Ordinaries index fell 3.81% to 7,859.4.
This sell-off, the worst since the COVID-19 market crash in March 2020, came after U.S. unemployment unexpectedly rose to 4.3%, hinting at a potential recession. Despite this, experts like NAB’s Taylor Nugent suggest that strong labor force growth could mitigate these effects.
In Japan, the Nikkei plunged 13%, its most significant drop since 1987, exacerbated by a yen rally after Japan’s central bank hiked rates.
In Australia, sectors across the board saw declines, with IT stocks dropping 6.61%. Major companies like BHP and the Big Four banks also faced significant losses.
Amidst this turmoil, the Reserve Bank is unlikely to raise rates, with market expectations shifting towards a potential rate cut.