A Closer Look at the Global Stock Market Sell Off

On August 5th, global stock markets experienced a significant sell-off, leading to widespread panic among investors. Major indices across the world saw sharp declines, with some of the most prominent markets experiencing their worst day in decades (Japan’s Nikkei 225 posted its worst day since 1987). The Dow Jones Industrial Average, for example, plummeted by over 1,000 points, while the S&P 500 and NASDAQ each fell by more than 3%. And this was on the heels of the previous week’s decline, which saw U.S. equity markets lose more than 2%, including a drop of more than 6% for the smaller-cap Russell 2000.

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