New Delhi [India], August 5 (ANI): The US stock market experienced a significant plunge, with Dow Jones opening more than 1000 points lower.
The downturn follows a global market sell-off, shaking investor confidence and raising concerns about an impending recession.
During the early hours of trading, the Dow Jones Industrial Average (DJIA) plummeted by 1,083.07 points, a decline of 2.79 per cent, settling at 38,654.19.
The tech-heavy Nasdaq Composite Index saw an even steeper drop, losing 680.15 points, or 4.05 per cent, to reach 16,196.01. Meanwhile, the S&P 500 fell by 164.67 points, a decrease of 3.11 per cent, landing at 5,181.89.
Ajay Bagga, banking and market expert, commented on the situation, stating, “Globally, markets are reacting after the Sahm Rule got triggered on Friday, as US unemployment reached 4.3 per cent. This is predicting a US recession.”

The “Sahm Rule,” a recession indicator developed by macroeconomist Claudia Sahm, who has served at both the Federal Reserve and the White House Council of Economic Advisers, is designed to signal the onset of a recession when the unemployment rate rises by a significant margin compared to its lowest point over the previous year.
The recent rise in US unemployment to 4.3 per cent has activated this rule, suggesting that the economy may be heading towards a downturn.
The sharp decline in US markets is part of a broader global market rout, driven by a combination of factors including rising inflation, geopolitical tensions, and concerns over tightening monetary policies by central banks worldwide.
Investors are grappling with the potential impacts of these issues on economic growth and corporate profitability.
As the trading day progresses, market participants will be closely monitoring economic data, corporate earnings reports, and statements from policymakers for further indications of the market’s direction. The heightened volatility underscores the uncertainty and challenges facing the global economy in the months ahead.
On Friday, US markets experienced significant drops, with the Nasdaq falling by 2.43 per cent to 16,776.16, approaching a 10 per cent decline from its peak. The S&P 500 and Dow Jones also saw decreases of 1.84 per cent and 1.51 per cent, respectively.
Additionally, WTI crude oil prices hit an eight-week low due to fears of a global economic slowdown, despite persistent geopolitical tensions in the Middle East. (ANI)

Asian markets rebound- Nikkei Soars, Gift Nifty shows sign of recovery

New Delhi [India], August 6 (ANI): Japanese stock markets rebounded during the early trading session on Tuesday, recovering from the losses incurred on Monday.
The Nikkei 225 index surged by over 9 per cent, gaining 2,912 points to reach 34,375 points at the time of filing this report.
India’s Gift Nifty index also showed signs of recovery, indicating that Indian markets may start with gains. The Gift Nifty index rose by 137 points to 24,280 points.
Other Asian markets reflected this positive trend, with Hong Kong’s Hang Seng index trading higher, Taiwan’s Taiwan Weighted index increasing by around 1 per cent, South Korea’s KOSPI surging more than 3 per cent, and Indonesia’s Jakarta Composite also trading with gains.
Global stock markets faced significant pressure on Monday. The Japanese markets declined by more than 8 per cent, closing at 31,458.42.

Indian markets also experienced a sharp downturn, with the Sensex plunging 2,222.55 points to close at 78,759.40, and the Nifty falling 662.10 points to end at 24,055.60. Among the Nifty companies, only five advanced while 45 declined, underscoring the market’s bearish sentiment.
In the United States, the stock market also saw a significant plunge. The Dow Jones Industrial Average (DJIA) opened more than 1,000 points lower and ended the day down by 1,083.07 points, a decline of 2.79 per cent, settling at 38,654.19.
The tech-heavy Nasdaq Composite Index experienced an even sharper drop, losing 680.15 points, or 4.05 per cent, to reach 16,196.01. Meanwhile, the S&P 500 fell by 164.67 points, a decrease of 3.11 per cent, landing at 5,181.89.
Globally, markets are reacting after the Sahm Rule got triggered on Friday, as US unemployment reached 4.3 per cent. This is predicting a US recession.
The “Sahm Rule,” a recession indicator developed by macroeconomist Claudia Sahm, who has served at both the Federal Reserve and the White House Council of Economic Advisers, is designed to signal the onset of a recession when the unemployment rate rises by a significant margin compared to its lowest point over the previous year.
The recent rise in US unemployment to 4.3 per cent has activated this rule, suggesting that the economy may be heading towards a downturn. (ANI)

Sensex, Nifty close in the red amid global market turmoil

Mumbai (Maharashtra) [India], August 5 (ANI): Stock markets experienced a sharp decline on Monday reflecting widespread global trends.
The Sensex plunged by 2,222.55 points, closing at 78,759.40, while the Nifty fell by 662.10 points, ending the day at 24,055.60. Among the Nifty companies, only five advanced while 45 declined, underscoring the market’s bearish sentiment.
Top gainers in the Nifty included Hindustan Unilever, Tata Consumer Products, Nestle India, Britannia, and HDFC Life. Conversely, Tata Motors, ONGC, Adani Ports, Tata Steel, and Hindalco emerged as the top losers.
Varun Aggarwal, founder and managing director of Profit Idea, commented on the sectoral performance. “Sector-wise, all indices ended in the red, with Nifty Realty leading the decline, falling 5 per cent. Nifty Metal, Media, and Auto indices dropped between 3-4 per cent. The decline in Indian markets is expected to persist due to multiple global headwinds. Investors are advised to be cautious, particularly in highly overbought sectors.”
The downturn in Indian markets mirrored the broader global market turmoil. Asian equities tumbled, driven by fears of a slowing US economy, sustained declines in Japanese stocks, and escalating geopolitical tensions in the Middle East.

Vinod Nair, Head of Research, Geojit Financial Services, said the global market was jolted into a cautious mode by recessionary fears in the US following disappointing job statistics and an unwinding of carry trade following the rapid rise of the yen. “The effects were felt by the domestic market as well and are expected to impact in the near-term.”
“Nevertheless, the market showed resilience at day’s low and recovered to close above 24,000. Historically, the Indian market had showcased a solid track record of outperformance compared to the global market in the long-term. This trend is expected to stay as GDP growth is forecast to be robust for the decade aided by progressive policies, fiscal prudence, and a favourable political landscape,” he added.
The global sell-off was intensified by fears of a reverse Yen carry trade following Japan’s recent interest rate hike. Additionally, poor US job data exacerbated recession concerns, contributing to the market decline.
The Japanese yen’s appreciation by 10 per cent against the dollar over the past three weeks has prompted investors to unwind carry trades, further contributing to global market instability.
US markets also saw sharp declines on Friday with the Nasdaq dropping 2.43 per cent to 16,776.16, nearing a 10 per cent decline from its peak.
The S&P 500 and Dow Jones fell by 1.84 per cent and 1.51 per cent, respectively. Adding to the concerns, WTI crude oil prices fell to an eight-week low amid global slowdown fears, despite ongoing geopolitical tensions in the Middle East. (ANI)