The New York Stock Exchange experienced a significant downturn on Monday, with the Dow Jones index falling by 2.60%, marking its worst session since 2022. The Nasdaq and S&P 500 also faced substantial declines, driven by fears of a recession in the United States and the strengthening of the yen, leading to a market rout that reverberated globally. The VIX index soared, reflecting heightened market volatility and investor anxiety.
In Asia, the KOSPI index plummeted by over 8%, triggering a circuit breaker and marking its largest decline in 16 years. This sharp drop was attributed to fears of an economic downturn originating from the U.S., leading to widespread sell-offs across major stocks. The KOSDAQ index also faced significant losses, highlighting the interconnectedness of global markets amid economic uncertainty.
Meanwhile, hedge funds are moving away from carry trades as the yen appreciates, further impacting stock market dynamics. Notably, concerns over job creation in the U.S. and high-profile sell-offs by investors like Warren Buffett have contributed to market jitters. Analysts emphasize the need for a long-term perspective amidst current volatility, suggesting that while immediate declines are alarming, historical trends indicate potential recovery.
