• Dow Jones fell another 1,300 points from Friday’s close.
• Markets are recoiling amidst concerns of an escalation in Middle East conflicts.
• Souring US economic data is increasing concerns of a wider economic slowdown.

The Dow Jones Industrial Average (DJIA) extended into a third straight day of downside momentum as equities plunge in the face of a bad batch of US economic figures signalling the growing possibility of a harder, deeper recession than most investors were prepared for in the coming months. Geopolitical tensions are also on the rise, further batting down risk appetite as the Israel-Palestinian Hamas conflict looks set to widen with the possible involvement with Iran.

Last Friday’s US Nonfarm Payrolls (NFP) would have been a good print in years past, but that was then and this is now. The lowest initial print in the number of net jobs additions since 2019 sent shockwaves through investor markets, dragging down equities and sparking fears of a broad recession over the horizon for the US economy. Monday accelerated losses, sending all US sectors and indexes into the red.