Shares of banks and other financial institutions plunged amid fears that the Federal Reserve would be too late with rate cuts to save the U.S. economy from recession.
Weak jobs data caused shockwaves around global markets and Japan's Nikkei index suffered its biggest fall since 1987. One money manager said his clients were relatively sanguine, and remained focused on the long-term outlook for equity markets.
"I think this pullback is going to be a blip: the question is, over what time period," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "Is it going to be a blip in the market performance over the next week, over the next three months, or over the next three years? The further you go out, the more comfortable I am saying it's a blip."
French banking giant Societe Generale agreed to sell its private banking units in Britain and Switzerland for about $982.1 million and to dispose of its Madagascar unit, all in the name of offloading noncore operations.
British insurer Prudential's first-half results are set to reveal slower growth across the insurer and asset manager's key lines, leading to a less positive view for the rest of the year, Deutsche Bank said in a note.
Customers were reporting problems logging into major brokerages including Charles Schwab and Vanguard shortly after the market opened in New York Monday.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
08-05-24 1748ET
