US Stock Market Sees Sharp Decline

Today, at the start of trading, the Dow Jones index dropped by about 2.8%, followed by other notable US indices, specifically, the S&P 500 (-4.1%) and Nasdaq (-5.7%). However, compared to the results of the Japanese Nikkei index, which fell by more than 12% today, the American stock market is still holding up.

The sharp decline has been attributed to an unexpectedly pessimistic report on the US labor market, which was published just before the weekend, as noted by Bild. The publication raised concerns about the downturn in US industry and predicted a significant slowdown in global economic growth.

Furthermore, market participants believe that the US Federal Reserve has missed the opportune moment to lower interest rates and may do so too late.

The so-called Fear Vix barometer, which measures sentiment on Wall Street, is now at its highest level since the outbreak of the coronavirus in 2020.

Today, European stock prices have also declined. Germany's leading Dax index has lost nearly three percent, while the eurozone's most well-known index, EuroStoxx 50, has recorded similar losses.