Dow sheds 1,000 points, Japan stocks rebound

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Dow sheds 1,000 points, Japan stocks rebound

A trader works on the floor of the New York Stock Exchange.

NYSE

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Wall Street sinksThe

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and the

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, as growing concerns about the U.S. economy rocked global stock markets. The Dow plummeted over 1,000 points, while the S&P 500 and

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fell 3% and 3.4%, respectively. Tech stocks were hit hard, with

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and

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losing 6.4% and 4.2%.

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‘s shares also declined 4.8% after

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. The yield on the 10-year

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note reached its lowest point since June 2023, while

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slipped to their lowest settlement since Feb. 5. 

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monopolyA federal judge ruled 

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 holds an 

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and text advertising markets. The decision focused on

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’s exclusive search arrangements on Android and Apple devices, which the court said reinforced its dominance. “

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is a monopolist, and it has acted as one to maintain its monopoly,” Judge Amit Mehta wrote in the decision. The ruling stems from combined antitrust suits filed by the Department of Justice and several states in 2020.

Emergency rate cut?Wharton finance professor Jeremy Siegel

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in the federal funds rate following Friday’s disappointing jobs data. He also suggested another 75-basis-point cut at the September meeting. Siegel believes the current fed funds rate “should be somewhere between 3.5% and 4%,” citing the higher-than-expected unemployment rate and declining inflation as reasons for the cuts. “How much have we moved the fed funds rate? Zero,” he said. “That makes absolutely no sense whatsoever.”

Fed will ‘fix it’Chicago Federal Reserve President Austan Goolsbee said the central bank would react to signs of weakness in the economy and indicated that

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. “The Fed’s job is very straightforward: maximize employment, stabilize prices and maintain financial stability. That’s what we’re going to do,” Goolsbee told CNBC’s “

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.” “We’re forward-looking about it. So if the conditions collectively start coming in like that on the through line, there’s deterioration on any of those parts, we’re going to fix it.”

Asia reboundJapanese

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on Tuesday after a historic drop, with the

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and Topix index gaining as much as 10%. The

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weakened 0.86% to trade at 145.27 against the dollar supporting export-oriented sectors.

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and chipmaker

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jumped 14.7% and 19.1% respectively. Other Asia-Pacific markets also followed suit, recovering from recession fears triggered by weak U.S. jobs data. South Korea’s

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jumped 3.3% and Australia’s

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was up 0.4%. Hong Kong’s

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slipped 0.1%, while mainland China’s CSI 300 dipped 0.1%. 

[PRO] Sayonara hot moneyAfter the

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‘s worst day since the 1987 ****** Monday ******, fund manger Richard Kaye believes the current market turmoil presents a chance to invest in

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as foreign investors exit certain positions. 

The bottom line

Monday’s massive sell-off was the result of a perfect storm of factors, including 

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, 

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recession fears and concerns about the Fed’s slowness in cutting rates.

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included

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. Despite calls for an

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to stabilize the market, not everyone is convinced and this could be a buying opportunity.

Brian Belski, BMO chief equity strategist, considers the

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. He advised investors to pick up high-quality tech stocks.

“You have been provided a gift here the last couple days, in terms of your Amazons, Apples, Googles, Microsofts,” Belski said. “You absolutely, positively have to have exposure to these names.”

“Now these names obviously got too ****** on the upside, with respect to their valuations, and now they have been humbled. Everybody needs a little humility in their life and we’re seeing that in these names. We believe it’s short term and reactionary to be chasing consumer staples and utilities now.”

Main Street Research CIO James Demmert agreed that a “healthy correction” was “overdue” given recent high valuations.

He added, “Market fundamentals have actually improved in recent weeks, particularly the Federal Reserve’s assurance that interest rate cuts are coming.”

Chicago Fed President Austan Goolsbee’s comments that the Fed would “fix it” if economic conditions deteriorate significantly could provide assurance for a jittery market. Wall Street’s ***** gauge spiked to as high as 65 during Monday’s pullback, though later pulled back to about 38.

If futures are any indication, calmer minds could be taking hold. S&P 500 futures rose 0.9% Monday evening as Nasdaq 100 futures gained 1.2%.

“It’s too early to say the low is in,” wrote Keith Lerner, Truist’s co-chief investment officer. “There has been damage done, and the repair process will likely take time. However, the risk/reward appears to be gradually improving as the market’s bar for positive surprises resets lower.”

— CNBC’s Hakyung Kim, John Melloy, Sarah Min, Jeff Cox, Michelle Fox, Tanaya Macheel, Rohan Goswami and Dylan Butts contributed to this report.

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#Dow #sheds #points #Japan #stocks #rebound

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