Wall Street Suffers Worst Drop in Nearly 2 Years as Economic Fears Mount

Wall Street plunged in its worst drop in nearly two years as recession fears and global market turmoil spooked investors.

A trader works on the floor of the New York Stock Exchange on Aug. 5, 2024. AP Photo/Richard Drew

Wall Street suffered its sharpest decline in nearly two years on Aug. 5, joining a global stock rout driven by a confluence of factors, including growing fears that the U.S. economy may be spiraling into a recession.

Weak readings on the job market and manufacturing in the United States last week reinforced concerns that the Federal Reserve may have waited too long to cut interest rates, dimming hopes for a soft landing and causing investors to pivot away from risky assets such as stocks and seek refuge in the safety of bonds.