Wall Street Hit by Fears Economy in ‘Danger Zone’: Markets Wrap

A renewed bout of volatility hit markets around the globe as concerns about a slowdown in the world’s largest economy spurred warnings that this year’s torrid stock rally has gone too far.

From New York to London and Tokyo, equities got pummeled. Just as markets were starting to celebrate signals from the Federal Reserve about a first rate cut, they were hit by a perfect storm — surprisingly weak economic data, underwhelming corporate earnings, stretched positioning and poor seasonal trends. While the S&P 500 pared some of its losses, it was on track for the biggest decline since 2022. Tech bore the brunt of the selling, with the Nasdaq 100 heading to its worst start to a month since 2008.