The Dow Jones Industrial Average followed a trend of tumbling global markets when it closed down more than 1,000 points on Monday.
The drop followed a dismal July jobs report which showed hiring fell sharply and the unemployment rate climbed to 4.3% — the highest since October of 2021.
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While U.S. stock markets reacted Friday with losses, Monday was the first opportunity for the global markets to respond.
Japan’s Nikkei 225 fell more than 12%, South Korea’s Kospi dropped 8% and the U.K.'s FTSE 100 was down 3%.
There's concern the Federal Reserve missed its window to be ahead of a recession by not cutting interest rates. The Federal Reserve is not scheduled to meet until the middle of September, but some are calling for Chairman Jerome Powell to call an emergency meeting before then.
"We're really in limbo right now," financial analyst Garrett Boorojian told Scripps News.
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Boorojian notes that consumer confidence is a key factor in the economy, and it's been falling as people face higher prices at places like the grocery store.
"We really have to talk to the American people and say, 'What are you feeling at home? What is the greatest concern in your household, and congressional response has to be based on what constituents are feeling, so the president and his cabinet and his economic team can really address the situation and talk to the Federal Reserve Chairman, Jerome Powell, and his team and see what can be done."
