Global stocks slide

Though the TSX was closed Monday for a holiday, the rest of the world suffered steep losses in stocks, driven by fears of a U.S. recession or slowdown following weak employment data last Friday. Meanwhile, there was a report that Nvidia’s next-generation AI chips were delayed, and confirmed reports that Warren Buffett had sold half his substantial Apple holdings. After Japan’s central bank raised interest rates, the Nikkei crashed 12.4% at levels last seen in 1987. In New York, the Nasdaq tanked over 600 points or by -3.71%, the Dow slid over 1,100 points or at -2.78% and the S&P fell over 170 points or -3.24%.

Though partially recovering from morning levels, Nvidia was still routed by 7.08%. Likewise, Intel closed -7.61%, Apple -5.64%, Tesla -4.57%, Walgreens -6.97% and United Airlines -6.27%. The VIX spiked 66% but rocketed far higher early in the session to levels last seen at the onset of Covid in early 2020. Bitcoin tanked by 6.6% to US$54,260 as WTI actually gained 0.45% to US$73.85. Fears of a recession triggered a fall in the U.S. 10-year-yield to 3.774%, a 52-week low, as many on the street felt that the U.S. Fed will definitely cut interest rates in September, and perhaps sharply. Some feel that Monday’s selling was overdone and represents a buying opportunity, however. The TSX reopens tomorrow.