Global Markets Plunge on Recession Fears, Rate Cut Bets Surge

Global markets reacted strongly to fears of a potential recession in the United States. Share markets experienced significant drops, with Japan`s Nikkei entering bear market territory, while bonds rallied as investors sought safer assets. Experts believe this shift is driven by weaker-than-expected economic data, particularly in the U.S., leading to speculation that the Federal Reserve will need to cut interest rates to stimulate growth. While some anticipate multiple rate cuts, others see a more gradual approach. The consensus is that market volatility will likely persist, influenced by economic data and potential pre-election dynamics in the U.S.