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U.S. Futures Tumble as Recession Fears Grip Investors

U.S. stock index futures have dropped significantly, with Nasdaq futures leading the decline at nearly 4%, as fears of a U.S. recession intensify.

Mega-cap and growth stocks, including Apple and Nvidia, experienced sharp declines in premarket trading. Weak economic indicators and poor forecasts from tech companies have raised concerns, pushing the Nasdaq into correction territory.

The probability of a 50 basis points rate cut by the U.S. Federal Reserve in September stands at 91.5%, with expectations for year-end rates to be lower. Wall Street brokerages are revising their Fed rate projections to show more policy easing.

Investors are anxiously awaiting speeches from Fed officials for clues on potential interest rate cuts. The CBOE Volatility Index, a measure of market fear, is at its highest level since May 2022.

Crypto-linked stocks, like Coinbase Global and Bitfarms, fell as Bitcoin hit a five-month low. $AAPL $NVDA $COIN $RIOT $BTC.X

Stock Highlights:

• Apple ($AAPL): Fell 7.6% after Warren Buffett’s Berkshire Hathaway unloaded nearly half of its stake.
• Nvidia ($NVDA): Dropped 10% due to reports of a delay in the launch of its upcoming AI chips.
• Intel ($INTC): Fell 4.9% after reporting a significant earnings miss and announcing layoffs.
• Tesla ($TSLA): Dropped 7.9% despite positive sales data from China.
• Coinbase ($COIN): Plunged 15% following a broader selloff in the crypto sector.
• CrowdStrike ($CRWD): Fell 6.8% despite rejecting Delta Air Lines’ outage claims.
• BioNTech ($BNTX): Dropped 3.2% after missing second-quarter earnings estimates.
• Moderna ($MRNA): Fell 5.3% after being downgraded by RBC Capital Markets.

Market Insights:

Today marks a significant moment for many tickers as they reach correction territory. Historically, buyers tend to step in at this point. With the Federal Reserve likely to lower interest rates before the election, we can expect a market pop upon that announcement. Check our chat for detailed ticker run-downs posted last night.

Stack well, OP!

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