US stocks open lower as massive selloff resumes with recession fears

By Ovunc Kutlu

ANKARA (AA) - Major indices in the US stock market opened lower on Monday as the major selloff from the previous week continues with investors' worries of a possible recession.

The Dow Jones was down 420 points, or 1.3%, to 32,478 at 9.32 a.m. EDT (1332GMT) The S&P 500 fell 66 points, or 1.6%, to 4,057 points.

The Nasdaq plummeted 256 points, or 2.1%, to 11,890.

Last week's selloff started last Thursday, a day after the US Federal Reserve raised interest rates 50 basis points and signaled that more rate hikes are on the table in coming meetings.

The Fed's hawkish stance and aggressive monetary tightening are viewed by investors as factors that could trigger a recession in the world's largest economy.

In addition, the continued swelling of crude oil prices amid the Russia-Ukraine war, as well as coronavirus lockdowns in China, persisting supply chain constraints, and chip shortages were considered major hurdles in the global economy.

With worries rising, the VIX volatility index, also known as the fear index, soared 9.2% to 32.96 when the US stock market opened.

After the 10-year US Treasury yield jumped to its highest since November 2018, it climbed further to 3.139% for a 0.47% daily gain.

The dollar index soared on Friday to $104.06, its highest since December 2002, while it was at $103.71 for 0.05% gains during the opening bell on Monday.

Precious metals were down, with gold losing 0.7% to $1,870 and silver shedding 1.1% to $22.12.

Crude oil prices declined around 2%.

Global oil benchmark Brent crude was trading at $110.03, down 1.2%, while the US benchmark West Texas Intermediate (WTI) was at $107.25 -- a 2.3% loss.

The price of Bitcoin, the world's largest cryptocurrency market by trade volume, dove below $33,000 earlier to mark its lowest level since July 2021.