As the US stock market approached Monday's opening, benchmark indices experienced a notable decline, reflecting escalating fears of an economic recession. Investors reacted promptly, leading to a widespread sell-off across various asset classes. The Standard & Poor's 500 index plummeted by 2.7%, while the Dow Jones Industrial Average recorded a decrease of 1.8%.
The Nasdaq notably fell by 4.2% in premarket trading, and Asian and European markets mirrored this downturn, tracking firmly in the red. Compounding these market anxieties, the Bureau of Labor Statistics released data on Friday showcasing a jobs report for July that fell short of expectations, further intensifying recession concerns among economists and investors alike. Amidst this turbulent market landscape, Bitcoin witnessed a sharp decline of 13%, dropping to $51,393.
Simultaneously, West Texas Intermediate crude oil prices decreased nearly 2%, settling at $72.06 per barrel. Long-term treasury yields also reacted to the fluctuations, with the yield on 10-year Treasuries slipping by 6.1 basis points to 3.73%. In the precious metals market, gold prices fell slightly, diminishing by 0.3% to $2,462 an ounce. In pre-market actions, significant losses were observed among tech giants.
Tesla (TSLA) shares succumbed to a substantial drop of 7.7%, while Nvidia (NVDA) saw its stock prices plummet approximately 10%. Amazon.com (AMZN) faced a decline of 5.7%, and Apple (AAPL) shares decreased by 8.9%. This downturn in Apple's stock was further influenced by news that Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) had liquidated nearly half of its stake in the iPhone manufacturer during the second quarter of the fiscal year. Looking ahead to earnings announcements, companies including Tyson Foods (TSN), BioNTech (BNTX), Carlyle Group (CG), Freshpet (FRPT), Krystal Biotech (KRYS), and Treehouse Foods (THS) are scheduled to release their latest quarterly results before the opening bell.
Following market closure, investors can anticipate earnings reports from CSX (CSX), Palantir Technologies (PLTR), and Diamondback Energy (FANG). On the economic agenda, the July purchasing managers' index composite final report from S&P Global is set to be released at 9:45 am ET, succeeded by the ISM Services gauge for the same month at 10 am. Additionally, Federal Reserve Bank of San Francisco President Mary Daly is slated to deliver remarks at 5 pm, which may provide further insights into the current economic conditions and potential Federal Reserve policy directions..