World markets shaken over fears of U.S. recession as sell-offs deepen

Global financial markets are experiencing significant turmoil amid rising fears of a recession in the U.S. Nearly all major indices on Wall Street are declining, with the S&P 500 down 2.1%, the Dow Jones Industrial Average falling by 763 points (1.9%), and the Nasdaq composite dropping 2.4%. This sell-off follows a staggering 12.4% plunge in Japan's Nikkei 225, marking its worst day since 1987. The downturn was triggered by a disappointing U.S. jobs report indicating a slowdown in hiring, raising concerns that the Federal Reserve may have maintained high interest rates for too long. As a result, traders speculate on the possibility of an emergency rate cut before the Fed's next scheduled meeting on September 18. The global market reaction has been severe, with South Korea's Kospi index plummeting 8.8% and European markets also experiencing declines. Big Tech stocks have been particularly hard hit, with Apple and Nvidia seeing significant drops. Despite the turmoil, some economists suggest that a recession is not a certainty, with Goldman Sachs estimating only a 25% chance of one occurring. Investors are now closely monitoring upcoming economic data to assess whether the market's reaction is an overreaction.

- Global markets are in decline due to fears of a U.S. recession.

- The Nikkei 225 experienced its worst loss since 1987, dropping 12.4%.

- Concerns over high interest rates and a slowing U.S. economy are driving sell-offs.

- Big Tech stocks, including Apple and Nvidia, have seen significant declines.

- Economists suggest a recession is not guaranteed, with a 25% chance estimated by Goldman Sachs.