This chapter analyzes the drastic decline in global stock markets, particularly in Asia and Europe, and the immediate impact on the U.S. market. It explores the underlying causes linked to major tech stocks, concerns over AI viability, and central banks' contrasting monetary policies. The discussion is enriched with insights from market analysts on the implications of recent economic indicators and potential future risks.
On Wall Street, the S&P 500 had its worst day in nearly two years and the Dow Jones Industrial Average shed over 1,000 points. Shares on Japan’s Nikkei Index fell by over 12% — their worst showing since Black Monday in 1987. Cryptocurrencies dropped, bond yields rose and the VIX, known as the fear index, saw its biggest one-day spike in more than 30 years. Is the Fed to blame? AI over-exuberance? Warren Buffett?
On today’s episode, Bloomberg columnist John Authers walks host David Gura through the global market meltdown: what triggered it, how long it could last, and when to panic.
Read more: $6.4 Trillion Stock Wipeout Has Traders Fearing ‘Great Unwind’ Is Just Starting
Further listening: Why the Market’s Big Tailwinds Are Coming to an End
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