After non-farm payrolls completely missed the mark on Friday, US recession fears and bad economic data sparked a shock wave through global markets. Japanese economy, having its own catastrophic problems, has been on the receiving end of things, as Nikkei dropped for  4.451 points. That is the largest daily point drop in Nikkei’s history, completely overshadowing US economic data.

Neil Newman, head of strategy at Astris Advisory, has said it best: “That was a crash. It smelled like 1987”. Reminiscent of the past, especially the “Black Monday” in 1987, a panicked sell-off ensued, while the fire caught on to commodity and crypto markets as well. Seeing everything in red, even gold and other safe-havens, bond markets were the only victors.

Federal Reserves, previously pointing out a rate cut in September, has announced an  emergency meeting is possible as early as next week, in a move not seen since Covid19    times. This could be a spark of hope, as investors were waiting for a rate cut anytime in 2024, while blaming presidential elections for the inaction of the Fed.