US Stock Market Also Forecasted to Plunge?…Nasdaq Futures Drop Over 5% and S&P Futures Fall Over 3% Simultaneously

On the 5th (local time), as concerns over a global economic recession caused Asian stock markets to plummet, major index futures showed sharp declines ahead of the U.S. regular market opening.

At 8:11 a.m. (9:11 p.m. Korean time) before the New York Stock Exchange opened, Dow futures were down 2.45%, Standard & Poor's (S&P) 500 futures fell 3.47%, and Nasdaq futures dropped 5.05%. Nasdaq futures at one point fell 6.5%, raising concerns about a circuit breaker activation.

Earlier that day, major Asian stock indices including Korea, Japan, and Taiwan experienced record-breaking losses, causing widespread devastation. The KOSPI index fell 11.3% compared to the previous session, while Japan's Nikkei index dropped 12.4%. Another Japanese index, the TOPIX, also closed with a sharp decline of 12.23%.

This is analyzed as a result of rapidly spreading recession fears following negative recent U.S. employment data. Doubts have also been raised about the effectiveness of investments in artificial intelligence (AI), especially among major big-tech companies that had been driving the recent U.S. stock market rally. Additionally, instability in the Middle East region is also negatively impacting the stock markets.