Stock Market News for Monday, Aug. 5, 2024: Stocks Tumbled Amid Global Selloff

The S&P 500 and Dow marked their worst days since 2022 as stocks slid in response to rising fears about a recession, geopolitical uncertainty, and a surging Japanese yen.

The S&P 500 fell 3%, while the Dow Jones Industrial Average shed 1,033 points, or 2.6%. The Nasdaq Composite fell 3.4%.

For the S&P 500 and Dow, it was the biggest one-day percentage drop since 2022. For Nasdaq it was the worst drop since late July.

Bond yields initially sank to start the day, but the 2-year Treasury yield finished the day up to 3.88%. The 10-year yield dipped to 3.782%.

The CBOE Volatility Index, or VIX, soared as high as 65.73 but was recently at a still-elevated 38.76 reading. The VIX crossed 50 for the first time since 2020.

Traders continued to react to last week’s soft economic data that called into question the market’s previous indifference about signs of an economic slowdown.

Technology stocks were hit especially hard as traders fled highflying Big Tech and AI plays, but all the major S&P 500 sectors fell more than 1% for the first time since November 2022.