Why did global stock markets suddenly and quickly collapse on August 5, 2024?

The global stock markets experienced a significant collapse on August 5, 2024, due to a combination of factors:

1. US Recession Fears: A weak July payroll report revealed an increase in the US unemployment rate to 4.3%, which heightened fears of an impending recession. #USRecession #Unemployment
2. Interest Rate Hikes: Japan's decision to raise interest rates by 25 basis points disrupted global financial markets, particularly affecting the "carry trade" where investors borrowed cheap money in Japan to invest in US stocks. #InterestRates #JapanEconomy
3. Market Volatility: August is typically a volatile month for markets, and this year was no exception. The volatility was exacerbated by less-than-positive earnings reports from major tech companies like Amazon and Intel. #MarketVolatility #TechEarnings
4. Investor Sentiment: High-profile investors, including Warren Buffett, sold off significant holdings, which further fueled panic among investors. #InvestorSentiment #StockMarketCrash

These factors combined to create a perfect storm, leading to a sharp decline in stock markets worldwide. #GlobalMarkets #StockMarket

How are you feeling about the current market situation? Are you considering any changes to your trading strategy? #TradingStrategy #CryptoMENA