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Topic:Stock Market
US stocks plunged as concerns about the American economy saw investors head for the exits.
The ASX looks set to follow the negativity, after the Nasdaq dropped 4 per cent for its worst day since September 2022.
Follow the day's financial news and insights from our specialist business reporters on our live blog.
Disclaimer: this blog is not intended as investment advice.
By Stephanie Chalmers
US markets are no stranger to the Trump rollercoaster but comments he made in an interview with Fox News on Sunday (US time) seem to have left investors particularly spooked.
In response to a question about the chances of a recession, the president didn't rule it out:
"I hate to predict things like that…
"There is a period of transition, because what we're doing is very big."
That was enough to spark the sell-off and send the Nasdaq to its worst session since September 2022, despite efforts from senior Trump officials to walk back from the negativity.
"Headlines of recession risk rising (from low levels) abound," NAB's head of market economics Tapas Strickland wrote.
"Several US banks updated their subjective recession probabilities: Goldman's on Friday lifted theirs to 20% from 15%, while JP Morgan lifted to 40% from 30%."
By Stephanie Chalmers
Tariff uncertainty and concerns about the US economy weighed on stocks overnight.
In the wash up of the sell-off, Reuters has gathered some commentary from US investors.
Here's what they're putting the negativity down to:
"Has the economy really fallen off a cliff in the last six weeks? No. And yet the perception is dramatically different today than it was at the end of last year." Edward Al-Hussainy, Columbia Threadneedle Investments
"They said there's going to be a period of volatility, there's going to be a rough patch here … the stock market is trying to digest that, and they're discounting that out into the future with lower valuations." — George Cipolloni, Penn Mutual Asset Mgmt
"The market is already starting to price in the slowdown at this point, but it's too soon to tell. At this point the problem is the uncertainty, so we'll see what happens." — Joe Saluzzi, Themis Trading
"International investors are coming out of the US markets and they're going elsewhere. Today, it's flying out of everything. You have people unwinding that carry trade. This isn't something that just unwinds in a day or two, you could see this get ugly." — Dennis Dick, Triple D Trading
By Stephanie Chalmers
Morning! I decided to drop the good, because it certainly wasn't a good overnight session on global markets.
Due to daylight savings ending in the US, we've had Wall Street close a short time ago.
The tech-heavy Nasdaq index tumbled 4 per cent for its worst one-day drop since September 2022.
The broader S&P 500 lost 2.7 per cent, while the Dow shed 2.1 per cent.
ASX futures are pointing down, but not by anywhere near the same magnitude so far — but hey, it's early days.
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