Investors diverge over US recession concerns amid global market sell-off

Fed expected to cut rates in September

Sorin Dojan
clock • 3 min read

Stock markets worldwide nosedived on Monday (5 August) amid fears that the US is headed for a recession, pushing investors to give up on risky assets.

Japan's Nikkei 225 was down 12.4% as markets closed on Monday, the worst one-day fall in over three decades, according to data from MarketWatch. The US Nasdaq Composite opened 6.3% lower on Monday morning, while the S&P500 was down 4.2%. The fall came amid concerns over a US recession after traders reacted to lower-than-expected employment figures from the world's largest economy on Friday (2 August), which collided with worries from investors and analysts that the Federal Reserve may have delayed beginning its rate cutting cycle for too long.  Japanese index suffers worst ever fal...

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