The U.S. stock market faced a massive sell-off on August 2, 2024, with $2.9 trillion in equities liquidated due to a poor jobs report and growing recession fears. This marks the worst market day since the COVID-19 pandemic.
The Dow Jones Industrial Average fell over 600 points, and the Nasdaq dropped more than 400 points. Major technology stocks were heavily impacted, with Microsoft and Nvidia down over 2% and 5%, respectively. Alphabet and Meta Platforms also saw declines of 2.7% and 3.3%.
Consumer cyclical stocks were among the hardest hit, with Amazon plunging 11% and Tesla decreasing by 1.92%. Financial sector losses included JPMorgan Chase and Berkshire Hathaway, which fell 1.45% and 1.84%, respectively. Healthcare stocks had mixed results, with Novo Nordisk rising 3.23% and Eli Lilly dropping 4.14%.
Even consumer defensive stocks, usually more resilient during downturns, experienced declines. Coca-Cola and Procter & Gamble dropped 0.92% and 1.66%, respectively. The energy sector was also affected, with significant losses for Exxon Mobil and Chevron.
The extensive sell-off reflects widespread market fears, with major IT companies experiencing significant market value fluctuations. The global reaction was evident as European and Asian markets also tumbled following the U.S. jobs report and increasing unemployment.
