US stocks take a tumble amid recession fears

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The Dow Jones Industrial Average followed a trend of tumbling global markets when it opened on Monday, falling more than 1,000 points. The sharp drop follows a dismal July jobs report which showed hiring fell sharply and the unemployment rate climbed to 4.3% — the highest since October of 2021.

Latest job report sparks layoff anxiety among AmericansWhile U.S. stock markets reacted Friday with losses, Monday was the first opportunity for the global markets to respond. Japan’s Nikkei 225 fell more than 12%, South Korea’s Kospi dropped 8% and the U.K.'s FTSE 100 was down 3%. There's concern the Federal Reserve missed its window to be ahead of a recession by not cutting interest rates.

Consumer confidence in US falls in June as Americans fret about near-term prospectsBoorojian notes that consumer confidence is a key factor in the economy, and it's been falling as people face higher prices at places like the grocery store.

 

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