PARIS (Reuters) – The New York Stock Exchange fell at the opening on Monday, as a possible recession in the United States triggered by the Federal Reserve’s rate hikes pushed back risky assets.

In early trading, the Dow Jones index lost 1,126.78 points, or 2.84%, to 38,610.48 points, and the broader Standard & Poor’s 500 fell 4.18% to 5,123.18 points. The Nasdaq Composite lost 6.26%, or 1,050.80 points, to 15,725.363. This would be the index’s worst drop since March 9, 2020, if it continues.

The latest monthly report on US labor markets showed much weaker-than-expected job creation, a situation corresponding to that described by the “Sahm ​​rule” which states that a significant increase in unemployment over six months announces a recession.

Those fears are heightened by the Fed’s latest decision to leave rates unchanged while emphasizing risks to labor markets. The next meeting is not for another six weeks, too late for some observers who fear that a delayed response could worsen the economic downturn.

The sharp rebound in the yen, which is making carry trades on US stocks more expensive, and the fall in global stock markets are adding to the pressure on US assets.

The ISM services indicator, at 1400 GMT, will be closely watched, as the main sector of the US economy could also show signs of weakness.

In terms of values, Apple fell by 9.45%, with Berkshire Hathaway having halved its stake in the group.

Design flaws could cause a delay of three months or more in the launch of Nvidia’s next artificial intelligence chips, The Information reported Friday, sending Nvidia down 14%.

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(Written by Corentin Chappron, edited by Sophie Louet)

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