Why Fear Is Gripping Markets Everywhere

Hoh quickly the mood is changing. Just two weeks ago, stocks were in a seemingly inevitable bull run after months of hitting new record highs. Now they are in free fall. America Nasdaq The 100-stock index, dominated by the tech giants that have been at the center of the boom, has fallen more than 10% since its mid-July peak. Japan’s Topix has seen losses in double digits, falling 6% on Aug. 2 alone — its worst day since 2016 and, after a 3% drop on Aug. 1, its worst two-day streak since 2011. Stocks elsewhere haven’t been as badly hit, but panic is gripping markets (see chart 1). Wall Street’s “fear gauge,” VIX The index, which measures expected volatility based on the prices traders pay to hedge against it, has surged to its highest level since the American regional banking crisis last year (see chart 2).