US stocks experienced a significant decline on Monday morning following the release of a disappointing July jobs report, which heightened concerns about the stability of the US economy. The Dow Jones Industrial Average plummeted by 1072 points, representing a 2.7% decrease. The broader market indices also saw sharp declines, with the S&P 500 falling by 4.1% and the Nasdaq Composite dropping by 6.3%.
The Cboe Volatility Index (VIX), a measure of expected stock market volatility, surged to 55. This level of volatility had not been seen since the Great Financial Crisis of 2008, indicating heightened levels of fear and uncertainty among investors. The market turmoil on Monday followed a steep decline on Friday, when the Dow experienced a drop of over 900 points at its lowest point during the session.
Global markets were not immune to the negative sentiment, as Japanese stocks recorded their largest single-day loss in history on Monday. The concerns about a potential economic slowdown in the United States reverberated across international markets, leading to widespread sell-offs and increased market volatility.
