On Monday afternoon, the stock market experienced a significant downturn, with the Dow Jones Industrial Average plummeting nearly 2.7% or 1,000 points, marking its worst day in almost two years. The S&P 500 Index also dropped by 2.7%, while the Nasdaq composite fell by 3.7%. This decline was attributed to both overseas market trends and concerns regarding the U.S. economy, particularly following a disappointing jobs report that raised fears of a potential recession.
Several prominent tech giants, including Apple, Amazon, and Nvidia, were among the worst-performing stocks on Monday, as investors opted to sell off their shares. Notably, Nvidia experienced a 12% decline, Apple lost 9.3%, Amazon dropped 7.4%, and Meta saw a 7.6% decrease in stock value. Google and Microsoft also faced losses of 5.4% and 4.9%, respectively.
Over the weekend, Warren Buffett's Berkshire Hathaway revealed a substantial cash stake of $276.9 billion as of June 30, indicating a shift away from stocks. Additionally, Nvidia's stock price adjustment following a 10-for-1 stock split in June impacted its market performance.
In the banking sector, major lenders such as JPMorgan Chase and Bank of America experienced declines of 2.1% and 2.5%, respectively. Retail, finance, and banking stocks were also affected by the market downturn.
Financial planners emphasized the importance of remaining calm during market fluctuations, advising against panic selling. Instead, they suggested viewing the current situation as an opportunity to invest, referring to the lowered stock prices as a potential buying opportunity. Catherine Valega, a certified financial planner, highlighted the potential benefits of investing during market downturns, stating, 'Stocks are on sale today, right? If you have some cash, let’s go put some money in the market.'
