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The worldwide tech stock market crash on Thursday had investors running for bonds, the Swiss franc, and conventional safe havens, sending stock markets into a multi-trillion dollar spiral.
Initial trades on Wednesday saw the main bourses in Europe and Asia fall by over 1% as investors responded to the Nasdaq’s worst day since 2022, which followed disappointing earnings reports from companies like Alphabet and Tesla.
Worries about the world’s second-largest economy were heightened when China’s central bank unexpectedly reduced interest rates on longer-term loans, sending stock prices, iron ore, and oil tumbling even more.
Futures indicate a 100% possibility of a Federal Reserve lowering in September, and investors ramped up betting on rate reductions abroad as a result of the stock sell-off. The U.S. dollar fell 0.7% to 152.78 yen on Thursday, as a jump in market volatility (.VIX) fueled a brutal squeeze on carry trades.
opens in new tab MSCI’s most comprehensive index of global stocks fell 1%, and the Nikkei 225 of Japan’s stock market fell 3.3%, with a further 11% drop in Nissan Motor following a 99% quarterly earnings slide.
Typhoon Anita forced the continuation of the two-day closure of Taiwan’s stock exchange.
In a recent session, the Shanghai Composite index and Chinese blue-chips both fell 0.9%, reaching a five-month low. Despite Beijing’s most recent easing measure, the Hang Seng (.HSI) index in Hong Kong fell 1.7%.
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