By Daniel Jones, Consumer Editor For Dailymail.Com and Alice Wright For Dailymail.Com
Major US stock indexes ended sharply lower on Monday as American recession worries shook global markets.
The recession concerns followed weak economic data last week, including Friday’s soft U.S. payrolls report.
As the sell-off intensified in the afternoon, President Joe Biden took to X to brag about how many billions of dollars of student loans he has written off. All investors were hit by the sell-off – from everyday Americans to Warren Buffett, the famed investor, who saw $15 billion wiped off his fortune. Wall Street has worst day since 2022 as fear of US economic slowdown deepens
Wall Street fell the most in nearly two years, continuing a global rout in financial markets, as fear worsens that the US economy is slowing down.
The S&P 500 fell 3 percent by the end of trading on Monday. The Dow Jones Industrial Average dropped more than 1,000 points, and the Nasdaq composite slid 3.4 percent.
It followed a 12.4 percent plunge for Japan’s Nikkei 225, its worst day since 1987.
Worries over the economy are front and centre after a series of disappointing reports, including a weaker-than-expected jobs report on Friday.
Big Tech stocks, which have led the market to record after record this year, bore the brunt of the selling.
16:25
Selloff may not be over yet, analyst says
Stock market pain may continue, a Wall Street analyst has claimed after a brutal day for the markets.
‘Things are oversold enough to where stocks will likely rebound and rally soon, but the pain isn’t over just yet,’ Dan Wantrobski of Janney Montgomery Scott told Bloomberg.
‘There’s a good deal to overcome technically before shooting back up to all-time highs,’ the technical strategist explained.
The S&P 500 and Nasdaq indices fell 3 percent on Monday, following concerns over the US economy.
Money advisors weigh in what to do when stock markets sell off like today – and how you can boost your 401(K)
‘If you’re tweaking based on today’s decline, you’re doing it all wrong,’ Noah Damsky, a financial adviser in Los Angeles, told the Wall Street Journal.
The rationale is that you should not make investment decisions based on emotions.
One exception is that investors might use it as an opportunity to use cash to buy shares that have slumped in value.
“A good strategy to avoid buyer’s remorse if markets continue to fall or turn up is to buy at predetermined time intervals,” Francisco Ayala, a financial planner in Phoenix, also told the WSJ.
That might be investing 10 percent of your savings over a ten week period.
It can be a time to turn any cash in your retirement account into stocks.
‘Right now is a great time to make sure you don’t have extra cash laying around in your 401(k),’ Matt Fizell, a financial planner in Madison, Wisc, told the WSJ..
‘If you’re five or more years out from retirement, it’s unlikely you’ll need liquidity in this type of account.’