The Nasdaq has fallen for the third day in a row, alongside the S&P 500, as stocks continue to be sold off.
This comes amid concerns that central banks, namely the US Federal Reserve, will continue to raise interest rates this year.
Rates have increased over the last 12 months as economies have attempted to control the impact of rampant inflation.
For the third day this week, the Nasdaq Composite plummeted by 1.06 percent to close at 13,872.47, while the S&P 500 fell by 0.7 percent.
In light of recent data and stock market data, experts are circling back to previous concerns about a likely recession.
Companies most affected by this hit were Apple, which saw stocks drop by three percent, and Boeing stocks shed 0.37 percent.
In response, US Treasury yields rose, weighing on risk assets again with the yield on the two-year Treasury note trading above the five percent level.
As well as yesterday’s yield rise, economic data from the US fuelled greater concerns over more interest rate increases in the world’s largest economy.
The ISM service index’s price component jumped by 58.9 percent for August which is the highest in four months.
On top of this, the ISM manufacturing index’s price component rose to 48.4 percent in a reversal of recent trends.
In light of this, experts are sounding the alarm that the Federal Reserve will likely choose to hike rates in a decision which could be mirrored by other central banks.
Growing interest rates have many concerned about a potential recession being inadvertently triggered.
A recession is defined as happening when a country experiences two consecutive quarters of negative economic growth.
While the US and UK avoided this fate, other G7 economics like Germany have fallen into a technical recession.
Speaking to CNBC, Vital Knowledge’s Adam Crisafulli said: “The ISM reinforced all the concerns that have been bedevilling stocks for weeks – higher yields undercut stock valuations, robust growth [and] sticky inflation keep pressure on the Fed, healthy growth gives a further bid to oil.”
Sam Stovall, CFRA Research’s chief investment strategist, added: “Even though we keep hearing that we’ll probably be in just a soft patch and not a recession, the more negative news that we get about the economy, the more I think people worry that we could actually fall into a recession.”
