The market is like a huge movie theater with a narrow exit. As long as one person shouts "fire", everyone will rush to the exit and cause congestion. This is a systemic risk.
On Tuesday, concerns about the US recession were ignited again, involving global financial markets. The three major US stock indexes fell across the board. The Nikkei 225 Index fell 4%, the Nikkei 225 Index fell by more than 3%, and the Shanghai Composite Index fell below $2,800.
Bitcoin and Ethereum were also affected. Bitcoin fell to $55,555 on Tuesday, and Ethereum fell to $2,304. As a giant in the chip field, Nvidia fell by more than 10%. Panic sentiment spread to every corner of global finance in an instant, and the VIX panic index rose by 31%.
Next, we will focus on Thursday/Friday, the US ADP employment data for August, the number of initial jobless claims that week, and the non-farm employment data on Friday. Once the unemployment rate rises further, it will inevitably confirm the market's current concerns about a hard landing of the US economy, thereby triggering further declines in global stock markets.
