It's been a rough few days on Wall Street. Stocks tumbled to start the week after a disappointing July jobs report on Friday sparked fears of an incoming recession, a concern that worsened over the weekend amid a global market sell-off. Japan stocks are in a confirmed bear market, with the Nikkei plunging 12.
4% and posting its worst day since Black Monday of 1987. On Monday, the Nasdaq Composite pushed deeper into correction territory, down more than 13% from the all-time high it reached just last month. The S & P 500 is off by nearly 9%, and it could soon join the tech-heavy index.
The Dow Jones Industrial Average has tumbled more than 6% from its recent high. That, plus falling U.S.
Treasury yields, as well as a spike in Wall Street's fear gauge to its highest level since 2020 , has investors increasingly skittish about markets and the economy. The prospect of an emergency rate cut by the Fed added to those fears. .
VIX 1D mountain VIX On Wall Street, however, many investors expect the fears of a slowing economy are overdone, and that markets are overreacting. They argue the sell-off has been long overdue, given the extent of this year's rally, and many expect the pullback could soon represent a buying opportunity — especially in the lagging tech trade. "It looks like this is a little bit more panic selling than it should be," said Mark Malek, chief investment officer at Siebert.
"At some point, you would hope that the cooler minds come in and look at it as a buying opport.