Global Markets Plunge Amid U.S. Recession Fears

Global stock markets tumbled on Friday due to rising concerns over the U.S. economy, highlighted by weak economic data and fears that the Federal Reserve may have delayed interest rate cuts too long. Japan's Nikkei 225 experienced its second-largest point drop in history, falling 5.8%, while other Asian and European indices also saw significant declines. U.S. markets were similarly affected, with the S&P 500 down 1.6%, the Dow Jones Industrial Average dropping 1.2%, and the Nasdaq falling 2.6%. The downturn was exacerbated by disappointing earnings from major tech companies like Intel and Amazon. Investors are now wary of a potential recession and are questioning whether anticipated rate cuts by the Fed in September will be sufficient to avert economic downturns. The U.S. dollar also weakened against the Japanese yen, adding to the pressure on export-related stocks in Japan.