FTSE 100 Live: 'The start of something nastier': Magnificent Seven shed $1 trillion
Today, concerns about a possible economic downturn in the US led to increased selling pressure on markets worldwide.
In Japan, the Nikkei 225 dropped over 12% in the most severe session since 1987.
The cautious attitude resulted in a decrease of over 10% in the value of the digital currency Bitcoin.
Nasdaq Drops 800 Points As Investors Flee Tech Sector
The fast-paced selling continues in US stock markets as the trading day begins in New York, with no indication of stopping.
The main stock market indicator for Wall Street, known as the S&P 500, has decreased by approximately 200 points to 5,125.30.
A more specific measure, the Dow Jones Industrial Average, saw a significant drop of more than 1,100 points to reach 38,525.24.
The Nasdaq Composite, which is focused on technology, went down by nearly 800 points to reach a level of 16,028.34.
Investors are selling off stocks because they are concerned that the US economy is slowing down significantly, even before the Federal Reserve has begun decreasing interest rates.
If a recession is on the horizon, it could have a greater impact if the largest economy in the world begins to shrink when interest rates are already high.
An important report on the US employment situation was released on Friday, showing a surprising increase in the unemployment rate. There was also frustration about the lack of new jobs created in July.
Asian markets experienced a significant drop today, as investors considered the potential effects of an increase in interest rates in Japan.
The unclear future of worldwide financial policies and economic expansion is causing waves in the markets. Bargain seekers are choosing to sit out while stocks are being sold off.
FTSE 100 Falls 220 Points, S&P 500 Poised For 200-point Decline
The widespread selling seen in stock markets around the world is expected to continue as US trading begins.
Just before the stock market opens on Wall Street, experts are forecasting that the S&P 500 will drop by approximately 200 points to 5181.50 once trading begins for the day.
The London stock market index, the FTSE 100, has decreased by more than 230 points to a value of 7944.16.
The FTSE Eurofirst 100, which monitors stocks across Europe, has dropped by more than 130 points.
Decreases started on Friday because of an unexpected increase in the US unemployment rate, causing concerns about a possible economic downturn.
This increased worry that stocks appeared too expensive once they reached new record levels.
The technology industry has appeared particularly vulnerable.
The Nasdaq Composite in New York is expected to start off lower based on future trading trends.
As the deadline approaches, there is still no evidence of investors searching for deals.
FTSE Falls As US Tech Stocks Drop; Magnificent Seven Lose A Trillion Dollars
One hour before the stock market opens on Wall Street, the FTSE 100 index has fallen even more and is now down by over 3%.
Nasdaq futures dropped by more than 4% and S&P 500 futures decreased by approximately 3% before the U.S. market opened.
The top seven technology stocks in the US, known as the 'Magnificent Seven', are expected to lose a total of $1 trillion when the markets open.
The top-performing stocks of Alphabet, Amazon, Meta, Microsoft, and Tesla have dropped significantly by 12.2% in early morning trading.
AJ Bell's investment director, Russ Mould, commented on the current situation, stating that the battle has begun. Optimistic investors will likely not be too worried, as the combined stock market value of the top companies is now only as high as it was in June, and the NASDAQ is at levels seen just a few weeks ago in late May.
According to pessimists, there has been a loss of $2.3 trillion on the Mag7 since May, while the NASDAQ is currently only 5% higher than its November 2021 levels, before the AI excitement started gaining momentum.
In any case, a significant amount of excitement has decreased, and some people may view this as a positive adjustment, while others may see it as the beginning of a more negative trend.
Midday Update: FTSE Dips More
The FTSE 100 continues to decrease without any indication of stopping, as the index dropped even more as the session progressed.
During lunchtime, the stock market has decreased by 2.6% or 214 points, reaching 7,960.
All stocks, except for Reckitt, Darktrace, and Haleon, are showing losses. Pershing Square's shares have dropped by as much as 7% due to the investment firm's significant investments in US equities.
Stocks Sinking? Hargreaves Lansdown Sees Opportunity!
In this blog post, Derren Nathan, who leads the team that analyzes company shares at Hargreaves Lansdown, mentioned that according to predictions of how the stock market will perform in the United States, it is likely that prices will continue to drop until they reach a stable level. The next few months will be challenging due to uncertainties in both the economy and politics, which are putting pressure on the market, especially as the United States approaches a highly unpredictable presidential election.
Attempting to buy a stock when its price is declining may result in losses, but it is crucial to maintain a focus on long-term goals. Research has demonstrated that remaining invested in the market and spreading out investments are essential components of a successful investment approach.
The current situation offers chances to invest in good companies. To handle the ups and downs, it's wise to gradually put extra money into the market. Well-established companies with strong market positions have been successful through various economic cycles. Plus, new major trends like artificial intelligence and the promising healthcare effects of weight-loss drugs are still present.
Timing To 'buy The Dip' Or Brace For US Recession – Scope Markets
Futures trading is indicating more decreases in New York, following a worldwide wave of selling that occurred after disappointing job data was released on Friday.
Today in New York, it is anticipated that the S&P 500 will drop by over 100 points.
This would cause the overall market index and broader US markets to move further from the record highs they reached earlier this summer.
Joshua Mahony from Scope Markets emphasized the significance of timing when interpreting signals among the distractions. The long-awaited US interest rate cut could determine the moment when confidence returns.
"Traders are now faced with the decision of whether to be concerned about a possible upcoming recession or to take advantage of lower prices in the hopes of a quick and decisive response from the Federal Reserve," he stated.
As the Sentix investor confidence gauge drops to its lowest level in seven months, it is evident that we are currently in a very fragile time for the markets, even though the monetary shift was expected to solve our issues.
Global Sell-off As US Economy May Miss 'soft Landing' - AJ Bell
As the deep and widespread drop in global markets continues with no clear conclusion in sight, concerns are growing that the US economy may be heading towards a difficult period. This analysis comes from City broker AJ Bell.
Danni Hewson, the leader of financial analysis at the company, mentioned that investors are concerned about the possibility of the anticipated US economic slowdown being rockier than initially expected by the markets.
"Circuit breakers have been activated in Asian markets due to a decrease in stock prices. Investors are rushing to assess the potential consequences of a slowing US economy."
The job numbers released on Friday came as a shock to the markets, which were already feeling uneasy due to fluctuating earnings reports and worries about the amount of money being invested by major tech companies in AI projects.
London markets have also been affected by the Monday meltdown.
FTSE 100 Stocks Drop, Utilities Hit Hard
Each member of the FTSE 100 experienced a decline in morning trading, following a widespread sell-off of global stocks that affected the city.
Utility companies, typically seen as a safe investment during uncertain times because of their stable income, were also affected by the selling frenzy.
Take a peek at the top underachievers and the not-so-bad ones.
FTSE 250 Drops 2.5%, Trustpilot And Aston Martin Fall
The FTSE 250 index has dropped by 2.5% or 521.52 points to 20,304.83. Only two stocks, Wizz Air and Jlen Environmental Assets, are showing gains.
In addition to Wood's 38% drop after Sidara withdrew their bid, shipping broker Clarkson experienced a 10% decrease on results day.
Within the group of investment trusts listed in the FTSE 250, JPMorgan Japanese experienced a decrease of 7%, Allianz Technology Trust saw a 5% drop, and Baillie Gifford Japan suffered a 4.5% decline.
Trustpilot's shares dropped 6% or 11.2p to 186.2p, losing some of their recent momentum. Aston Martin Lagonda also saw a decline, falling 7.3p to 138.6p.
"FTSE 100 Drops 2%, Glencore & Anglo American Feeling The Heat"
The FTSE 100 index has dropped 2%, or 159.95 points, to 8014.76, bringing the top stocks back to their April levels.
One of the top losers was Scottish Mortgage Investment Trust, a major supporter of Nvidia, whose stock fell by 4% or 36p to 777.2p.
The recent setback for GKN Aerospace's parent company, Melrose Industries, continued as it dropped another 5%, or 23.3p, to 459.3p. Its stock price had been at 585p before last week's earnings report.
In the industry of commodities, the value of Glencore stocks decreased by 4.5% or 18.2p to 386.85 before the release of Wednesday's mid-year results. Anglo American also saw a decline, dropping 83.5p to 2160p.
Other companies that experienced a drop in their stock prices were Vodafone, whose shares decreased by 2.9p to 69.3p, and Severn Trent, which saw a 5% decline, dropping 138p to 2515p.
