Quiver Markets Wrap: Wall Street Plunges as Recession Fears Rise

Major U.S. stock indexes ended sharply lower on Monday as U.S. recession worries shook global markets and drove investors out of risky assets, while Apple shares dropped as Berkshire Hathaway cut its stake in the company. The recession concerns followed weak economic data last week, including Friday's soft U.S. payrolls report. Indexes pared losses in late morning after data showed U.S. services sector activity in July rebounded from a four-year low amid a rise in orders and employment. Market Overview:

• Major U.S. stock indexes ended sharply lower.
• Apple (AAPL) shares dropped as Berkshire Hathaway (BRK.A) cut its stake.
• Cboe Volatility index spiked amid market turmoil.

Key Points:

• U.S. services sector activity rebounded in July.
• Nvidia, Microsoft, and Alphabet shares declined.
• Traders see a 92.5% probability of a Fed rate cut in September.

Looking Ahead:

• Continued monitoring of U.S. economic data and recession indicators.
• Impact of Federal Reserve's interest rate decisions on market sentiment.
• Potential for further market volatility as earnings season progresses.

Shares of Apple fell after Berkshire Hathaway halved its stake in the iPhone maker. Billionaire investor Warren Buffett also let cash at Berkshire soar to $277 billion. Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) also slid, while the Cboe Volatility index (VIX), Wall Street's "fear gauge," rose sharply. Chicago Fed President Austan Goolsbee downplayed recession fears but said Fed officials need to be cognizant of changes in the environment to avoid being too restrictive with interest rates. According to preliminary data, the S&P 500 (SPY) lost 159.20 points, or 2.98%, to end at 5,187.36 points, while the Nasdaq Composite (QQQ) lost 567.78 points, or 3.38%, to 16,208.38. The Dow Jones Industrial Average (DIA) fell 1,030.47 points, or 2.59%, to 38,706.79. The weak jobs report and shrinking manufacturing activity in the world's largest economy added to worries following recent disappointing forecasts from the big U.S. technology companies. The Nasdaq Composite on Friday confirmed it was in correction territory.