Wall Street collapses on US recession fears; Scott Wren explains why stocks are falling – The Economic Times Video

Wall Street’s major indexes plunged on Monday (August 5) as concerns spread around the world that the U.S. is headed for a recession after weak economic data released last week. Stock exchanges from Asia to Europe were hit, and bond yields fell as investors flocked to safe-haven assets and bets that the Federal Reserve would now have to cut rates aggressively to spur growth. The selloff was brutal, and the so-called “Magnificent Seven” group of stocks that were the main drivers of the indexes’ record highs earlier this year are expected to shed a combined $1 trillion in market value. Scott Wren, chief global market strategist at Wells Fargo Investment Institute, explains why the selloff happened. Watch!