{"id":14477,"date":"2024-08-07T01:34:58","date_gmt":"2024-08-07T01:34:58","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14477"},"modified":"2024-08-07T01:34:58","modified_gmt":"2024-08-07T01:34:58","slug":"us-stock-market-rebound-after-major-market-selloff-during-recession-fears","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/us-stock-market-rebound-after-major-market-selloff-during-recession-fears\/","title":{"rendered":"US stock market rebound after major market selloff during recession fears"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key points:<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>US stock indices rose after major averages experienced heavy selling pressure.&nbsp;<\/li>\n\n\n\n<li>Sharp drop in the Japanese stock market contributes to increased volatility.&nbsp;<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">US stock indices climbed in an attempt to recover from the steep losses seen at the beginning of the week as fears of a US recession mounted. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Dow Jones Industrial Average (Symbol: DJ30), S&amp;P 500 (Symbol: SP500) and Nasdaq Composite (Symbol: NAS100) had tumbled in regular trading on Monday, experiencing their worst sessions since September 2022.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/Image-70-1024x506.jpg\" alt=\"\" class=\"wp-image-14478\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/Image-71-1024x508.jpg\" alt=\"\" class=\"wp-image-14479\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/Image-26-1024x509.png\" alt=\"\" class=\"wp-image-14480\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: The US stock market rebounded near a session high, as observed on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noreferrer noopener\">VT Markets app<\/a>.\u00a0<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Dow Jones fell 2.6%, while the S&amp;P 500 dropped 3%. The tech-heavy Nasdaq Composite plunged 3.43%, driven by substantial declines in major technology stocks. Nvidia, a key player in this year&#8217;s rally, dropped 6.4%. Other notable tech giants like Microsoft and Tesla fell 3.3% and 4.2%, respectively. Apple saw a significant decline of 4.8% after Warren Buffett\u2019s Berkshire Hathaway announced it had halved its stake in the iPhone maker.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">BREAKING: S&amp;P 500 falls 3% in its biggest one-day drop since September 2022 <a href=\"https:\/\/t.co\/iXiIQXcnMX\">https:\/\/t.co\/iXiIQXcnMX<\/a> <a href=\"https:\/\/t.co\/uruXsLnJ0N\">pic.twitter.com\/uruXsLnJ0N<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1820551044440461512?ref_src=twsrc%5Etfw\">August 5, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>What is happening outside the US<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Outside the US, there is a sharp decline in the Japanese stock market, marking the worst performance since Wall Street\u2019s Black Monday in 1987, and the rapid unwinding of the yen \u201ccarry trade\u201d also played a role in the heightened volatility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"> This global market turbulence added to the already mounting concerns about a potential US recession, influencing <a href=\"https:\/\/www.vtmarkets.com\/blog\/education\/a-beginners-guide-to-sentiment-analysis-in-forex-trading\/\" target=\"_blank\" rel=\"noreferrer noopener\">investor sentiment<\/a> worldwide.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>What can a short-term trader do<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The rebound in the US stock market indicates potential for short-term gains, particularly if the positive sentiment holds. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the underlying fears of a US recession and global market instability suggest that volatility will remain high. <br><br>The CBOE Volatility Index (VIX) had spiked to a peak of 65.73 on Monday, reaching levels last seen during the COVID-19 pandemic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Create your live VT Markets account<\/strong><\/a><strong> and <\/strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>start trading<\/strong><\/a><strong> now.<\/strong>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>US stock market rebounds after a steep selloff, driven by recession fears and global market volatility. Notable tech giants like Microsoft and Tesla see major declines. <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[33],"class_list":["post-14477","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-stocks"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14477"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14477\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}