Why are global stock markets plunging?

Europe, Asia and Wall Street have all suffered big falls after US economy data spooked investors

Illustration of a paper airplane made from US dollars, a globe and Stock Exchange sign
Japan's Nikkei index has suffered the biggest falls of the major global markets
(Image credit: Illustration by Stephen Kelly / Getty Images)

Global stock markets have tumbled this week in a scare first sparked by fears the US economy is heading for a recession.

New data released at the end of last week suggested the US economy has significantly slowed, and the days following have seen a "global rout" in stock markets that has fuelled fears of a full-blown crash, said The Telegraph.

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Rebekah Evans joined The Week as newsletter editor in 2023 and has written on subjects ranging from Ukraine and Afghanistan to fast fashion and "brotox". She started her career at Reach plc, where she cut her teeth on news, before pivoting into personal finance at the height of the pandemic and cost-of-living crisis. Social affairs is another of her passions, and she has interviewed people from across the world and from all walks of life. Rebekah completed an NCTJ with the Press Association and has written for publications including The Guardian, The Week magazine, the Press Association and local newspapers.