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Wall Street tumbles on recession fears
Are we at the start of a recession or is this just a temporary correction? Less than 10 days after recording its worst day in 2019, Wall Street markets yesterday recorded an even worse single-day drop, as the DJ30, SPX500 and NSDQ100 indices each fell around 3%. The recent losses are attributed to the 10-year treasury bond yield briefly falling below its 2-year counterpart, which is an indicator of economic recession. The tech sector once again took a heavy hit, as Microsoft, Apple, Google, Facebook and Amazon recorded significant drops.
7536.75 75.45 (1.01%)
1764.07 -60.27 (-3.3%)
Today’s highlights: Crypto markets down
- Bitcoin falls below $10,000: The cryptocurrency market remained on its negative trajectory over the past 24 hours, as Bitcoin fell more than 7%, falling below the $10,000 mark for the first time in two weeks. The altcoin market registered even larger losses, as 6 of the top 10 cryptos showed double-digit declines.
- Asia follows Wall Street’s lead: Markets in the East were seen lower this morning, as bond yield throughout the continent fell, following the same phenomenon in US markets. Asian indices were on the decline, as the JPN225 index fell more than 1%, joined by the China50 and HKG50 indices.
- VIX index skyrockets: While major indices in the US are down, the VIX index, which tracks market volatility, jumped more than 20%. On eToro, investors can gain exposure to the index via the TVIX and VXXB ETNs.
- Volatility expected for USD: Retail Sales reports and the Philadelphia Fed Manufacturing Index report will be released today in the US at 12:30 GMT, potentially generating volatility for the greenback.
- Oil shows slight recovery: After yesterday falling on recession fears and an increase in US stockpiles, oil prices registered a small uptick this morning.
- Europe opens mixed: While the UK100 opened 37 points lower, the GER30 and FRA40 opened 22 and 6 points higher, respectively. Banks in France and Italy are closed today in observance of Assumption Day.
9511.48 -685.2 (-6.72%)
VXXVIX Short-Term Futures ETN Ipath (B)
30.4 3.64 (13.6%)
1.1142 0.0001 (0.01%)
Stocks earnings releases on 15/08/19
AMATApplied Materials Inc
Stocks earnings releases on 16/08/19
Earnings season continues: To follow upcoming earnings reports, go to eToro’s Earnings Reports Calendar. Please note that maximum leverage for CFD stocks will be limited to X5 one day ahead of earnings report releases. X10 leverage will be available again soon after the report is published.
* Cryptoassets are a highly volatile unregulated investment product. No EU investor protection. Your capital is at risk.
* Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
* The information above is not investment advice.
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