Dow drops 1,000 points, and Japanese stocks suffer worst crash since 1987 as markets quake worldwide

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The drops were just the latest in a global sell-off that began last week.

NEW YORK — A scary Monday that started with a plunge abroad reminiscent of 1987 ’s crash swept around the world and pummeled Wall Street with more steep losses, as fears worsened about a slowing U.S. economy. The S&P 500 dropped 3% for its worst day in nearly two years. The Dow Jones Industrial Average reeled by 1,033 points, or 2.6%, while the Nasdaq composite slid 3.4%. The drops were the latest in a global sell-off that began last week.

Expectations are still high for the latter, with growth for S&P 500 profits this past quarter looking to be the strongest since 2021. Professional investors also pointed to the Bank of Japan’s move last week to raise its main interest rate from nearly zero. Such a move helps boost the value of the Japanese yen, but it could also force traders to scramble out of deals where they borrowed money for virtually no cost in Japan and invested it elsewhere around the world.

 

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