Wall Street tumbles over fears of US recession; Scott Wren explains reasons behind the crash

Wall Street’s main indexes slumped on Monday (August 5) as fears of the United States tipping into recession following weak economic data rippled through global markets last week. Bourses from Asia to Europe took a beating, and bond yields slipped as investors rushed to safe-haven assets and bet the U.S. Federal Reserve would now need to cut interest rates aggressively to spur growth. The selloff was brutal, with the so-called Magnificent Seven group of stocks – the main driver for the indexes hitting record highs earlier this year – set to lose a combined $1 trillion in market value. Scott Wren, Senior global market strategist at Wells Fargo Investment Institute, explains the reasons behind the crash, watch!