CNBC Business News Update - Market Open: Stocks Lower, Dow & Nasdaq Plunge 1000 Points on Economic Slowdown Fears 8/5/24

Episode Date: August 5, 2024

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored and reported by CNBC's Jessica Ettinger.

I'm Jessica Ettinger, CNBC. A sell-off for stocks continues today. Out of the gate, the Dow down 1,000 points. As investors worry the economy is slowing too dramatically, Friday's jobs report came in soft. The NASDAQ is in correction, down more than 10% from its recent all-time high. The Dow now down 1,066 points. That's two and a half percent.

The S&P 500 index down 218 points. That's four percent. The Nasdaq is down 1,061 points. That's six percent. Major average is still positive for the year so far. Japan's market sold off overnight. Europe is selling off now. There's slowdown fears, yen carry trade issues. We had a tough Thursday, a tough Friday, a bad jobs number. Treasury yields dropping sharply with a rush to safety. The two-year, 10-year spread very close to de-inverting for the first time in more than two years. We've mentioned today's route started in Japan. The Nikkei had its worst day since Black Monday way back in 1987. Just overnight, the Nikkei lost 12.4 percent. CNBC's Joe Kernan. Crypto is also selling off. Bitcoin is around

49,000 now. It's lowest since February. Mortgage rates are plunging again today. Rates dropped sharply on Friday, but they'd actually been falling all week from 6.81% on the 30-year fix last Monday to 6.4% Friday, and that is the lowest level since May of 2023. The recent high was 7.52% in late April, and home sales have been falling ever since.

Buyers were battling not just high interest rates, but also high home prices and a lack of supply. Now, supply has improved a little bit, but prices are still overheated. CNBC's Diana Olick, Mortgage News Daily, will publish today's new average mortgage rate, expected to be lower than 6.4 percent a little bit later. The FAA says severe storms could impact flight operations across many U.S. airports today, including in the southeastern U.S., where insurance companies are also closely watching Hurricane Debbie. It made landfall in the Big Bend area of Florida as a Category 1 storm the corner between Panama City and Tampa. Debbie is now a category one hurricane with

maximum sustained winds of 75 miles per hour. Forecasters are expecting major flooding in the broader southeast over the next week. CNBC's Frank Holland, flood warnings in Georgia and South Carolina today. Mars is in talks to buy Kelanova, the snack food business spun off from Kellogg, according to reports. Republicans endorsing Vice President Kamala Harris for president, including a number who served in former President Donald Trump's previous administration. Republicans for Harris has launched. Paramount Global's HBO feeling some heat today after what some fans called a disappointing season two finale last night for House of the Dragon, which is the Game of Thrones hit prequel series. Disney, Marvel's Deadpool and Wolverine won the weekend box office. It's zooming toward a billion dollars globally in its first 10 days of release.

Universal's Twisters was number two over the weekend, approaching the 200 million dollar mark. Universal's a sister company to CNBC. Jessica Ettinger, CNBC. When you're at your very top speed, it feels like you can run forever. And then there's this one moment where everybody else starts to die. And you're like, I'm not about to die. I'm about to get faster. The Olympics from Paris on NBC and Peacock.