Wall Street Suffers Worst Drop in Nearly 2 Years as Economic Fears Mount

Wall Street suffered its sharpest decline in nearly two years on Aug. 5, joining a global stock rout driven by a confluence of factors, including growing fears that the U.S. economy may be spiraling into a recession. Weak readings on the job market and manufacturing in the United States last week reinforced concerns that the Federal Reserve may have waited too long to cut interest rates, dimming hopes for a soft landing and causing investors to pivot away from risky assets like stocks and seek refuge in the safety of bonds. The selloff continued on Monday, with the VIX market volatility measure, dubbed the Wall Street “fear gauge,” spiking intraday to its third-highest level in history after the Lehman Brothers collapse in 2008 and the COVID-19 meltdown....