The US stock market took a major tumble, losing a whopping $1.05 trillion in a single day. This was one of the biggest drops in recent history, fueled by weak economic data and struggles among major companies. Investors are understandably nervous, wondering if this is just the beginning of a bigger downturn.
The Dow Plunges, Tech Takes a Beating
The Dow Jones Industrial Average plummeted over 700 points, ending the day down over 2%. This was driven by disappointing manufacturing data, marking the fifth consecutive month of contraction. Investors reacted with fear, leading to widespread selling across the board.
The S&P 500 also lost about 2.4%, while the tech-heavy Nasdaq Composite took the biggest hit, falling nearly 3.5%. This was the Nasdaq’s worst day since early August. Nvidia, a major tech company, saw its share price drop by 9.5%, wiping out a staggering $279 billion from its market value.
Crypto Holds Steady Amidst the Chaos
Interestingly, while the stock market was in turmoil, cryptocurrencies like Bitcoin and Ethereum remained relatively stable. Bitcoin dipped by 3%, while Ethereum fell below $2,500.
Despite the recent downturn, Bitcoin’s market capitalization is still strong at around $1.2 trillion, with a year-over-year return of 128%. Some analysts are cautiously optimistic about a potential recovery, citing the upcoming US elections and the planned payout to FTX creditors.
What’s Next?
The short-term outlook is uncertain. More pain could be in store if weak economic data continues. Investors are anxiously awaiting the next set of economic reports and political developments.
While some believe the market has hit bottom, the road ahead is likely to be bumpy. It’s unclear how long it will take for the stock market to recover from this latest downturn.
