Fear of recession in the US, Japanese stock market tumble, and a spectre of an Israel-Iran war: Why Nifty, Sensex crashed on Monday?
Op IndiaThe Indian stock market indices plunged considerably on Monday, August 5, 2024, with Sensex nosediving over 2,500 points while Nifty plummeting over 900 points amidst weaker global sentiments, most notably a potential US recession, Japanese stock market crash, and the spectre of a potential Israel-Iran war have contributed to the mass sell-off. In July, the US unemployment rate increased to 4.3 per cent, and nonfarm payroll employment grew by only 114,000, fuelling fears of a weakening labour market and economic slowdown. Spectre of Israel-Iran war following the assassination of Hamas leader Haniyeh Additionally, geopolitical tensions in the Middle East have contributed to the market’s decline. Japan’s Nikkei plunges to 37-year low Besides weaker jobs data in the US and the fear of a looming Middle-East war, the mass sell-off in the Indian market was also triggered by an unprecedented crash in the Japanese stock market Nikkei, a shorthand for the Tokyo Stock Market Exchange.