The U.S. stock market experienced a significant sell-off on Thursday, with major indices showing notable declines. The Dow Jones Industrial Average dropped more than 1.6%, the S&P 500 fell over 2%, and the Nasdaq experienced a sharper decline of more than 3%. The market's reaction was triggered by fresh data that heightened concerns about a potential recession, raising doubts about the timing of possible Federal Reserve interest rate cuts.

The latest economic indicators added to the market's apprehension. The number of initial jobless claims in the U.S. saw the largest increase since August 2023. Additionally, the ISM manufacturing index came in at 46.8%, lower than expected, signalling a contraction in the economy. Chris Rupkey, chief economist at FWDBONDS, commented that these economic data points indicate a downward trend.

Several companies, particularly those vulnerable to economic downturns, were among the hardest hit. JPMorgan Chase's stock fell nearly 3%, while Boeing's share price declined by more than 7%. Major technology stocks, including Nvidia, also suffered, with Nvidia's shares dropping by 8%. As the U.S. presidential election approaches in November, market volatility may increase, and investors could be more inclined to sell off their holdings.