Financial Contagion Slams World Markets

The stock market ended last week in rough shape thanks to renewed fears of a US recession. Things appear to be getting worse Monday, with Dow futures plunging and world markets in similar shape:

• In the US: Dow futures dropped more than 800 points, or 2%, reports CNBC. Futures for the benchmark S&P 500 were down 3% and those for the tech-centric Nasdaq were down more than 4%. Specifically, Nvidia, Meta, and Apple were each down at least 5%, per the Wall Street Journal.
• In Japan, elsewhere: The Nikkei 225 index plunged 12% on Monday, its worst day of trading since the 1987 Black Monday crash on Wall Street, per the AP. South Korea's Kospi fell 8% and the Stoxx Europe 600 fell 2.5%.

• Bitcoin: Cryptocurrency was no safe haven amid the global selloff. Bitcoin fell below $50,000 at one point for the first time since February, per Coin Telegraph. Its 14% slide in 24 hours was eclipsed by that of another large crypto coin, ethereum, which fell about 18%.
• Fear gauge: The VIX, aka the "fear gauge" for Wall Street, rose above 50, its highest level since 2022, reports the Wall Street Journal.
• The Fed: Investors fear the Federal Reserve has left interest rates too high for too long, per CNBC. They may get a better sense of the central bank's upcoming strategy when San Francisco Fed President Mary Daly gives a speech after the close of markets on Monday.

(More global economy stories.)