Why the stock market is freaking out again | CNN Business

CNN — Fear has set in on Wall Street, and stocks are having another miserable day. The Dow tumbled more than 1,000 points, and the broader market plunged 3% Monday. The Nasdaq, full of risky tech stocks, dropped 3.5%. All of that comes amid a global market selloff. Japan’s Nikkei 225 index nosedived 12% — its worst rout in history. All major Asian and European markets fell substantially Monday. Three fears are emerging all at the same time to send markets into a tailspin Monday: Growing worries about a recession, concern that the Federal Reserve has failed to act promptly enough and a belief that big bets on AI may not pay off. Recession fears The most prominent is fear that the US economy is in much worse shape than previously believed — evidenced by Friday’s unexpected jump in the unemployment rate. Construction workers in San Francisco on May 7. David Paul Morris/Bloomberg/Getty Images Related article US economy added just 114,000 jobs last month and unemployment rose to 4.3% On Fri...