Over $1.93 trillion was erased from the global financial markets on Monday as fears of a potential recession gripped investors. The US stock indices experienced significant declines, fueled by weak economic data released last week.

US Indices Plummet

At 11:30 a.m. ET, the Dow Jones Industrial Average had plummeted 863.70 points, or 2.17%, landing at 38,873.56. Similarly, the S&P 500 dropped 129.55 points, or 2.42%, to 5,217.01, while the Nasdaq Composite fell 465.25 points, or 2.77%, to 16,310.92. Earlier in the day, the Dow was down by 996 points, the S&P 500 by 3.1%, and the Nasdaq composite by 3.8%.

Global Markets React

Global markets echoed the turmoil. Japan’s Nikkei 225 suffered a 12.4% decline, marking its worst day since the Black Monday crash of 1987. South Korea’s Kospi index tumbled 8.8%, and European stock markets collectively sank by roughly 3%. Bitcoin also took a hit, dropping 12%.

Tech Stocks Take a Hit

Big Tech stocks were not immune to the selloff. Shares of Alphabet, Netflix, and Meta fell between 2.5% and 4.0%. Nvidia saw a significant decline of over 8% following reports of a delay in the launch of its new AI chips due to design flaws. Apple’s stock dropped 4.6% after Warren Buffett’s Berkshire Hathaway announced a reduction in its stake in the company.

Safe-Haven Assets in Demand

As stocks tumbled, investors sought refuge in safe-haven assets, leading to a decrease in Treasury yields. The yield on the 2-year Treasury fell to 3.81% from 3.88% late Friday. Gold prices also dropped more than 2%, with spot gold trading at $2,389.79 an ounce by 10:15 a.m. ET.

Oil and Other Commodities

Crude oil prices extended their losses, hitting a seven-month low. Brent futures slipped below $76 a barrel, and West Texas Intermediate traded just above $72. Silver prices also plunged, with spot silver down 5.1% to $27.08 an ounce.

The economic turmoil has raised concerns about the future stability of the markets and the potential for a prolonged recession. For more details on the ongoing market crisis, read the full report on LiveMint.