U.S. Stocks Plummet Amid Recession Fears

U.S. stocks experienced significant losses on Monday, with the Nasdaq and S&P 500 dropping over 3% each. This decline is attributed to growing recession fears, weak economic data, and a major investor reducing its stake in Apple. The sell-off affected all major indexes and S&P 500 sectors.

U.S. stocks took a nosedive on Monday, with the Nasdaq and S&P 500 each losing over 3% as market jitters over a potential recession continued to mount. The drop marks the largest three-day percentage decline for major indexes since June 2022, sparked by last week's soft economic data and Apple shares plunging after a significant investor cut its stake.

Global markets felt the tremors of these recession concerns, pushing investors to steer clear of risky assets. The downturn was catalyzed by weak U.S. payroll numbers and fears the Federal Reserve was too defensive with interest rates.

Apple's shares fell 4.8% after Berkshire Hathaway slashed its holdings in the tech giant. As Buffett's cash reserves ballooned to $277 billion, other tech stocks like Nvidia, Microsoft, and Alphabet also saw declines. The Cboe Volatility Index hit its highest level since October 2020, reflecting heightened market fear. The S&P 500's technology sector led the downturn, with all 11 sectors recording losses.