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US frontline indices posted significant losses, with the Dow Jones Industrial Average (DJIA) plummeting more than 900 points, marking a fall of over 2% on Friday, August 2. The S&P 500 and tech-heavy Nasdaq also faced massive losses with indices plunging 2-3%.
Not just that, the S&P 500 is posed for its largest single-day drop since 2022, while the Nasdaq has officially entered the negative zone and is now down 10% from its recent record high.
Investors turned bearish as the latest US unemployment report showed the jobless rate at 4.3%, the highest since October 2021, significantly surpassing analysts’ expectations.
The rise in unemployment has fuelled worries about the health of the US economy and fears of a recession, triggering a wave of selling across indices.
Amid the mayhem on Wall Street, shares of Amazon.com fell more than 8% after the online retailer reported slowing online sales growth in the second quarter and said consumers were seeking out cheaper options for purchases.
Intel cracked 29% after announcing weak guidance and layoffs, while Nvidia
lost more than 5.5%, continuing losses after a 6% drop a day before.
Meanwhile, the US 10-year Treasury yield has dropped below 4%, its lowest point since December 2023, as investors flock to safer assets amidst the market volatility.
Earlier on Dalal Street, benchmark BSE Sensex plunged 885 points on Friday due to profit-taking in metal, auto and IT stocks, tracking the global selloff triggered by weak US macro data.
The 30-share BSE Sensex tanked 885.60 points or 1.08% to close at 80,981.95 with 25 of its components declining and five ending with gains. During the day, it nosedived 998.64 points or 1.21% to hit an intra-day low of 80,868.91.
Retreating from its record 25,000 level, the broader Nifty of NSE plummeted 293.20 points or 1.17% to end at 24,717.70. The 50-issue index fell 324.05 points or 1.29% to 24,686.85 during the session.
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