FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 3, 2024. REUTERS/Brendan McDermid/File Photo
Major U.S. stock indexes ended sharply lower on Monday as U.S. recession worries shook global markets and drove investors out of risky assets, while Apple shares dropped as Berkshire Hathaway cut its stake in the company.
The recession concerns followed weak economic data last week, including Friday’s soft U.S. payrolls report.
Indexes pared losses in late morning after data showed U.S. services sector activity in July rebounded from a four-year low amid a rise in orders and employment.
Shares of Apple fell after Berkshire Hathaway halved its stake in the iPhone maker. Billionaire investor Warren Buffett also let cash at Berkshire soar to $277 billion.
Nvidia, Microsoft and Alphabet also slid, while the Cboe Volatility index, Wall Street’s “fear gauge,” rose sharply.
Chicago Fed President Austan Goolsbee downplayed recession fears, but said Fed officials need to be cognizant of changes in the environment to avoid being too restrictive with interest rates.
“Today we’re seeing a sell-off as an extension of that anxiety that was felt last week,” said Neville Javeri, portfolio manager and head of the Empiric LT Equity team at Allspring in Washington.
It “started off with the jobs data last week, and it clearly led to the belief that the Fed needs to start being more proactive around where those unemployment numbers are going,” he said.
According to preliminary data, the S&P 500 lost 159.20 points, or 2.98%, to end at 5,187.36 points, while the Nasdaq Composite lost 567.78 points, or 3.38%, to 16,208.38. The Dow Jones Industrial Average fell 1,030.47 points, or 2.59%, to 38,706.79.
The weak jobs report and shrinking manufacturing activity in the world’s largest economy added to worries following recent disappointing forecasts from the big U.S. technology companies. The Nasdaq…
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