Wall Street Plummets on Fears of US Recession; Scott Wren Explains Why It Crash – Economic Times Video

Wall Street’s major stock indexes tumbled on Monday (August 5) as fears that the US could slip into recession following last week’s weak economic data rippled through global markets. From Asia to Europe, stock exchanges were battered, bond yields fell as investors rushed into safe assets and predicted that the US Federal Reserve would need to cut interest rates aggressively to spur growth. The sell-off was so intense that the so-called “Magnificent Seven” stocks, the main drivers of the stock indexes’ record highs earlier this year, are expected to lose a combined $1 trillion in market capitalization. Watch as Scott Wren, senior global market strategist at Wells Fargo Investment Institute, explains why the sell-off happened.