While the S&P 500 pared some of its losses, it suffered the biggest plunge in about two years amid strong trading volume. The tech-heavy Nasdaq 100 saw its worst start to a month since 2008. Wall Street’s “fear gauge” — the VIX — at one point registered its largest spike in data going back to 1990.
A renewed bout of volatility hit global markets as recent talk about a US economic recession — mostly seen as premature — spurred warnings that this year’s sizzling stock rally has gone too far.
From New York to London and Tokyo, equities got pummeled. Just as markets started celebrating signals from the Federal Reserve about a first rate cut, they were hit by a perfect storm — weak economic data, underwhelming corporate earnings, stretched positioning and poor seasonal trends.
