Concerns over the risk of a global economic recession have led to a $2 trillion outflow from the United States (US) stock market reported at the beginning of the week yesterday.
US stock futures plunged on Tuesday after the major averages came under heavy selling pressure earlier in the week amid fears of a US recession.
Not only in the US but stock exchanges around the world also experienced a critical decline with the sale of shares of giant companies including in Japan.
A sharp decline in the Japanese stock market, the worst since Black Monday on Wall Street in 1987, and a sharp decline in the yen's "carry trade" also contributed to the volatility.
In early trading Monday, the Dow and S&P 500 fell 2.6% and 3%, respectively, recording their worst session since September 2022.
The Nasdaq Composite also plunged 3.43%. Megacap tech stocks that have maintained strong performances this year declined the most on Monday, including Nvidia (-6.4%), Microsoft (-3.3%) and Tesla (-4.2%).
Apple also fell 4.8% after Warren Buffett's Berkshire Hathaway halved its stake in the iPhone maker.
Meanwhile, Palantir Technologies jumped 12% in extended trading on strong quarterly results and an increase in forecasts.
