U.S. stocks sell off, Dow down more than 1.6 per cent

U.S. stock markets suffered a sell-off on Thursday, the Dow fell more than 1.6%, the SP 500 fell more than 2%, the Nasdaq fell more than 3%. The latest data triggered market concerns about recession and the perception that it may be too late for the Federal Reserve to initiate a rate cut.

The latest weekly initial claims in the U.S. were the largest increase since August 2023.The ISM manufacturing index registered 46.8 per cent, which was lower than expected, suggesting that the economy is contracting.Chris Rupkey, chief economist at FWDBONDS, said that the economic data showed a downward trend in the economy.

A number of companies that could be severely affected by the recession were among the top losers, with JPMorgan Chase falling nearly 3 per cent and Boeing dropping more than 7 per cent. Big tech stocks such as Nvidia also felt the pain, with shares down 8 per cent. The market is likely to see more volatility as November's US elections approach and investors may sell their chips.