Markets tremble over risks to US economy – AP News

Global financial markets experienced significant turmoil, with the U.S. stock market suffering steep losses amid growing concerns about a slowing economy. The S&P 500 fell by 3.1%, while the Dow Jones Industrial Average dropped over 1,000 points, marking its worst decline since 2022. This sell-off was triggered by a disappointing jobs report indicating a slowdown in U.S. hiring, raising fears that the Federal Reserve's high interest rates might be excessively stifling economic growth. Japan's Nikkei 225 index plunged 12.4%, its worst day since the 1987 crash, as investors reacted to the U.S. data. Other global markets, including South Korea's Kospi, also saw sharp declines. Despite these losses, some analysts believe the market's reaction may be overblown, and the U.S. economy is still growing, with a low probability of recession. However, concerns about corporate profits, particularly among major tech companies, have intensified, leading to further declines in their stock prices. The ongoing geopolitical tensions, including the Israel-Hamas conflict, and the upcoming U.S. elections are adding to market uncertainty. As the situation evolves, the focus remains on job growth and its implications for consumer spending and overall economic health.

- U.S. stock markets faced significant declines due to fears of a slowing economy.

- The disappointing jobs report indicated a slowdown in hiring, raising recession concerns.

- Major tech stocks, including Apple and Nvidia, experienced sharp losses.

- Global markets reacted negatively, with Japan's Nikkei index suffering its worst drop since 1987.

- Geopolitical tensions and upcoming elections contribute to market uncertainty.