Advertisement

Apple, Nvidia lead sell-off as stock markets plunge on US recession fears

  • Chicago Fed President Austan Goolsbee said officials need to be aware of changes in environment to avoid overly restrictive interest rates

Reading Time:3 minutes
Why you can trust SCMP
8
Traders work on the floor of the New York Stock Exchange  ahead of the closing bell in New York on Monday. Photo: AFP

Major US stock indexes ended sharply lower on Monday as US recession worries shook global markets and drove investors out of risky assets, while Apple shares dropped as Berkshire Hathaway cut its stake in the company.

Advertisement

The recession concerns followed weak economic data last week, including Friday’s soft US payrolls report.

Indexes pared losses in late morning after data showed US services sector activity in July rebounded from a four-year low amid a rise in orders and employment.

Shares of Apple fell after Berkshire Hathaway halved its stake in the iPhone maker. Billionaire investor Warren Buffett also let cash at Berkshire soar to US$277 billion.
Nvidia, Microsoft and Alphabet also slid, while the Cboe Volatility index, Wall Street’s “fear gauge”, rose sharply.
A television screen on the floor of the New York Stock Exchange indicates another sell-off. Photo: AP
A television screen on the floor of the New York Stock Exchange indicates another sell-off. Photo: AP

Chicago Fed President Austan Goolsbee downplayed recession fears, but said Fed officials need to be aware of changes in the environment to avoid being too restrictive with interest rates.

Advertisement