After Asia and Europe, chaos in US stock market too?
After Asia and Europe, chaos in US stock market too…?
After the tsunami in the Asian stock markets, there is chaos in the US stock market too in the trading session of Monday, 5 august 2024. Dow Jones is trading with a decline of 1100 points, while Nasdaq is seeing a decline of 700 points. The stock of Elon Musk's company tesla has slipped by 12 percent. Shares of Amazon, including Facebook's parent company Meta Platforms, are also witnessing heavy selling. apple has slipped to a two-month low. On Monday, the decline in global stock markets started from Japan's stock exchange Nikkei 225 and it reached America by evening via india and european markets. Dow Jones has slipped down by 1100 points while Nasdaq has seen a decline of 700 points. S&P 500 slipped down by 150 points.
If we look at American stocks, the stock of iphone maker apple has slipped to a two-month low. Warren Buffet's Berkshire Hathaway has reduced its stake in apple by half. Currently, the stock is trading with a decline of 4.04 percent. microsoft has fallen by 4.6 percent, Alphabet i.e. Google's stock has fallen by 6 percent, Tesla's stock by 12 percent, Amazon's stock has fallen by 8.3 percent.
A big decline is being seen in American chip stocks. NIVIDIA's stock fell 10 percent and has reached a two-month low. The stock has been beaten due to the possibility of delay in the company's new AI chip. US bank stocks are also seeing a decline. JP Morgan has slipped 3.5 percent, Morgan Stanley 4 percent and BofA 5.5 percent. Crypto stocks have also fallen after a sharp decline in Bitcoin.
The US economy may be trapped in the web of recession, due to which stock markets all over the world are seeing a decline. This is the biggest decline in the US stock market in the last three sessions due to weak job demand data and reduction in manufacturing activity. To give impetus to the economy, the possibility of interest rate cut by the Federal Reserve in september 2024 has now increased.