(This is CNBC Pro's live coverage of Monday's Wall Street chatter as global markets sell off. Please refresh every 20-30 minutes to view the latest posts.) Stock markets around the world are selling off to start the week, as investors fear the U.
S. could be headed into a recession amid a spate of softening economic data. Japan's Nikkei 225 had its biggest one-day drop since 1987 overnight, losing 12.
4% . The Korean Kospi index also shed 8.7%.
In Europe , the Stoxx 600 index has shed more than 2%. U.S.
stock futures also pointed to steep losses at Monday's open . Dow Jones Industrial Average futures were down more than 600 points, or 1.6%.
Nasdaq-100 futures plunged 4.3%, and S & P 500 futures lost 2.6%.
Follow along for the latest chatter and reaction to the sell-off. All times ET. 5:51 a.
m.: Recession signals are 'coming home to roost', Evercore ISI says Signs of a recession are starting to pile up, according to Evercore ISI Chairman Ed Hyman. "With the soft employment report, the NASDAQ correction, the plunge in bond yields, and the plunge in commodity prices, it's possible we're seeing recession signals coming home to roost," Hyman wrote in a Sunday note.
His comments came after the U.S. government reported employment growth that was well below economist expectations on Friday.
That report sent equities tumbling, with the Nasdaq Composite closing in a correction — down more than 10% below. The data also led to some on the Street to increase their odds for a 0.5 percentage point rate cut from the Federal Reserve.
"Odds of a soft landing will increase if China weakness leads to a deeper plunge in WTI, pushing down inflation further, and allowing the Fed to be more aggressive," Hyman wrote. "Odds of a hard landing will increase if China's economy weakens too much, if house prices weaken too much, and/or if employment weakens too much." — Fred Imbert 5:51 a.
m.: Global markets in an 'aggressive risk-unwind', Vital Knowledge says Fears of a U.S.
recession are pressuring global markets, leading investors around the world to sell some of this year's top winners, according to Adam Crisafulli of Vital Knowledge. "Markets are caught in an aggressive risk-unwind as equities plunge around the world, with tech getting hit particularly hard," he wrote in a note Monday. "There are fundamental underpinnings of the price action directionally (weak US growth, worries the Fed is 'behind the curve', some disappointing earnings reports during the Q2 season, worries about AI-related capex spending, etc.
), but technical factors account for the velocity and magnitude of what's happened in the last couple of sessions and into this morning." Some of those technical drivers include "portfolio damage" that has spurred a "overall de-risking, creating a negative feedback loop whereby selling begets more selling." "In addition, even fundamental bulls don't see much reason to dive into the market given poor Aug seasonals and the absence of major catalysts in the immediate term .
.. while Fed officials won't overreact to a single labor report," Crisafulli said.
The Technology Select Sector SPDR Fund (XLK) , which tracks the S & P 500 tech sector, dropped 5.5% in the premarket Monday. XLK 1D mountain XLK plunges — Fred Imbert.
