Tech Stocks Tumble Amid Economic Slowdown Fears
Global stocks fell significantly on Friday, led by a sharp decline in tech companies, as concerns about a U.S. economic slowdown intensified. The downturn, initiated in Asia, spread to Europe and the U.S. Trading was influenced by poor earnings from Amazon and Intel, and fears of a potential recession heightened.
Global stocks took a significant hit on Friday, with tech giants bearing the brunt, as investor concerns over a U.S. economic slowdown sent shockwaves through markets. This decline was exacerbated by disappointing earnings reports from Amazon and Intel.
The slump began in Asia, with Japan's Nikkei index falling by 5.8%, its largest daily drop since the COVID-19 crisis in March 2020. The downward trajectory continued in Europe and was anticipated to persist on Wall Street.
The VIX, often referred to as Wall Street's fear gauge, rose to its highest level since April. Traders flocked to U.S. Treasuries, seeking the safety of benchmark debt securities. The market's anxiety followed a weak U.S. factory activity survey and preceded the monthly non-farm payrolls report, which is expected to show a decline in job growth.
(With inputs from agencies.)