Global Stock Markets Drop Amid Economic Concerns

Global stock markets have experienced significant declines, driven by fears of a potential recession in the U.S. Weak manufacturing data, which showed the lowest output in eight months, along with rising jobless claims, have raised concerns about the health of the economy. The Nikkei index fell 5.8%, marking its worst day since March 2020, while major U.S. indices also suffered substantial losses, with the Dow down 1.21% and the Nasdaq losing 2.30%. Analysts suggest that the Federal Reserve may have delayed necessary interest rate cuts, prompting investor anxiety. Additionally, disappointing earnings reports from major tech companies like Intel and Amazon further exacerbated market volatility. The Bank of England, in contrast, has already lowered its borrowing costs, creating a divergence in monetary policy responses.