U.S. Stocks Plunge Amid Economic Concerns and Fed Policy Woes

U.S. stocks fell significantly at the start of August due to economic data indicating a faster-than-expected slowdown. The Federal Reserve's restrictive monetary policy added to investor concerns. Notable companies like Meta Platforms and Amazon had mixed impacts, while chip stocks and small caps suffered major losses.

U.S. stocks fell sharply at the beginning of August, triggered by economic data hinting at a quicker-than-expected economic slowdown. Concerns over the Federal Reserve's restrictive monetary policy further weighed on investor sentiment.

Initial gains from companies like Meta Platforms quickly evaporated as the Institute for Supply Management's report showed a drop in manufacturing activity to its lowest level in eight months, at 46.8, indicating contraction. The Dow Jones Industrial Average dropped 494.82 points, while the S&P 500 and Nasdaq Composite also saw significant losses.

Other economic data revealed an increased number of unemployment claims, suggesting a softening labor market. Investors are now eagerly awaiting Friday's government payrolls report for further indicators. In a volatile trading session, defensive sectors like utilities and real estate performed better, but major tech names such as Apple and Amazon dragged the market down.

(With inputs from agencies.)