Japanese stocks experienced their biggest daily loss ever on Monday, August 5. Fears of a US crash have begun to ramp up.
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The Nikkei 225 index of leading stocks in Tokyo went down by 4,451 points. It’s the biggest drop in history. The index has closed more than 12% down. That takes its losses since early July to 25%, entering bear market territory.
Japanese Stocks Crash in Biggest One-Day Drop Ever
“That was a crash. It smelled like 1987,” Neil Newman, head of strategy at Astris Advisory stated to CNN. Neeman was referring to “Black Monday” in October 1987, when global markets plunged and the Nikkei lost 3,836 points.
The dow is set to open 1,000 points lower. Wall Street’s “fear gauge” — the CBOE Volatility Index — reached its highest level since the COVID-19 pandemic.
One X user warned stock owners not to panic. “It’s called a bull market correction,” they stated. “It’s also called wealthy folks inciting fear doing sell-offs while you all panic sell, and then they buy again. Don’t fall for the stupid crap people are putting out. This is normal. #stockmarketcrash”
It’s called a bull market correction. It’s also called wealthy folks inciting fear doing sell offs while you all panic sell, and then they buy again. Don’t fall for the stupid crap people are putting out. This is normal. #stockmarketcrash
— Zach Craven (@lottagameleftt) August 5, 2024
Other users joked about the crash, posting silly memes on X.
Those of us old poors watching people losing their shit with this current #stockmarketcrash. @RMcElhenney pic.twitter.com/yIlEbkqJ2T
— Ken Murray (@murraymaker) August 5, 2024