While investors sold stocks in high-tech companies, the effect was also felt by old economy businesses.
According to one analyst, Alan Ackerman, who spoke to the Reuters news agency, “Confidence is being trimmed back by the combustible combination of a slowing US economy, earnings disappointments and the Fed’s inability to lower interest rates immediately. The mood is glum and perplexing.”
Knock-on effects have been reported in both the Japanese and UK markets.