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Global markets plunge amid broad sell-off
Global stock markets are tumbling, led by a historic drop in Japan's Nikkei, with major European indexes and US futures also sharply down
Global stocks selloff continues on growing concerns about the US economy
Markets add to bets that central banks will cut rates
Nikkei plummets
Global stock markets faced a significant downturn today, spearheaded by a historic -12.4% decline in Japan’s Nikkei. Major European indexes are also suffering, with losses around -3%, though these are overshadowed by Japan’s severe drop. Concurrently, DOW futures have fallen over -1100 points, S&P 500 futures are down -4.4%, and NASDAQ futures have dropped -5.7%. The US 10-year yield has continued its sharp decline, dipping below the 3.7% mark.
VIX surges dramatically
Among the most striking charts today is the Cboe Volatility Index (VIX), Wall Street’s primary “fear gauge.” The VIX has surged to its highest level since the early pandemic days, poised for its largest single-day jump in over three decades.
Euro strengthens against Dollar
The euro is gaining against the dollar, rising as much as 0.9% to a six-month high of $1.1008, its strongest since January 2. This move is bolstered by expectations that the policy divergence between the Federal Reserve and the European Central Bank will narrow. Anticipation of more aggressive monetary easing in the US compared to Europe supports this trend, with swaps indicating 140 basis points of rate cuts in the US this year versus 85 basis points in the eurozone. Notably, the US 2-year yield has fallen below the 10-year yield for the first time since July 2022.
