The 5 reasons behind Monday’s global stock market rout
The pain started in Asia, where Japan’s Nikkei 225 cratered more than 12% in its worst day since 1987, while South Korea’s KOSPI sank over 8%, forcing a brief mid-day trading halt. After that dismal showing, the selloff quickly turned global.
Australia’s S&P/ASX 200 fell 3.7% on Monday, and Europe’s STOXX 600 dropped 2.17% after recovering some of its early losses. In the U.S., all three major market indices sank more than 2.5%, with mounting recession fears taking the blame for the collapse after a less-than-stellar July jobs report late last week.
However, there were a number of root causes—and reinforcing drivers—that combined to create global market mayhem on Monday.
“A confluence of events seems to have…
