On August 2, 2024, the U.S. stock market suffered a major setback, with $2.9 trillion in equities wiped out. The sell-off, the worst since the COVID-19 pandemic, was triggered by a weak jobs report and escalating fears of a global recession.
The Dow Jones Industrial Average closed with a loss of over 600 points, while the Nasdaq fell by more than 400 points. Technology giants were particularly affected, with Microsoft dropping over 2% and Nvidia declining by 5%. Alphabet and Meta Platforms also saw significant losses, falling by 2.7% and 3.3%.
Consumer cyclical stocks were hard-hit, with Amazon plunging 11% and Tesla dropping 1.92%. Financial stocks like JPMorgan Chase and Berkshire Hathaway fell 1.45% and 1.84%, respectively. Healthcare stocks showed mixed results, with Novo Nordisk rising 3.23% while Eli Lilly declined by 4.14%.
Consumer defensive stocks, usually more resilient during downturns, also suffered. Coca-Cola and Procter & Gamble dropped by 0.92% and 1.66%, respectively. The utilities and energy sectors saw major losses, affecting companies like Exxon Mobil and Chevron.
This massive sell-off highlights the widespread nature of market fears, with significant fluctuations in major IT companies’ market values adding to recession concerns. The global impact was evident as markets in Europe and Asia also reacted negatively to the U.S. jobs report and rising unemployment.
