U.S. stocks kicked off August sharply lower as initial jobless claims rose the highest since August 2023, and manufacturing data signaled economic contraction, raising recession fears. European stocks fell around, and Japan's Nikkei index plunged on Friday, its worst day in over four years. Analysts say corrections are normal after an extended bull run, but shares look vulnerable to further falls, so it may be too early to buy the dip. The Fed signaled a possible September rate cut but investors await the August jobs report for clues on the pace of future cuts.
