Global Stocks Plummet and Bonds Surge, As investors Fear An Imminent Recession

Grocery shopping - Via Unsplash - Marie-Michèle Bouchard
Grocery shopping - Via Unsplash - Marie-Michèle Bouchard

Global stocks plummeted Wednesday and bonds surged slightly as investors worried about the global economy, with disappointing data releases weighing down financial markets.

The MSCI World stock index plunged 0.31% Wednesday morning. US futures dipped after stocks fell dramatically on Tuesday following the release of data showing consumer confidence fell to a 16-month low in June.

S&P 500 futures fell 0.15% as of 5.35 a.m. ET, Dow Jones futures were broadly unchanged, and Nasdaq 100 futures were 0.24% lower.

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European stocks were in the red Wednesday, with the continent-wide Stoxx 600 1.09% lower and London’s FTSE 100 index down 0.51%.

Asian stocks fell overnight, with China’s CSI 300 dropping 1.54% and Tokyo’s Nikkei 225 losing 0.91%.

Global stocks have dropped significantly this year as inflation soared around the world, pushing central banks to cut back on their support for economies by hiking interest rates and ending their huge bond-buying programs.

Worries about growth have returned to the forefront of investors’ minds after data on Tuesday showed that consumer confidence in both the US and Europe has deteriorated sharply.