Amid BRICS de-dollarization, the crisis has reached the West, with more than $2 trillion being wiped out of the US stock market in the first hour of trading.
Indeed, concerns about America’s facing an economic slowdown have caused panic across global markets. Now, all eyes are on the US dollar’s potential to cope with the concern.
The greenback is front and center as the trouble occurs worldwide. Specifically, Japan saw its stock market suffer the largest daily drop ever. The Nikkei 225 stock index dropped by 4,568.02 by close, dropping more than 12%. That is the largest since 1987 when it fell by 3,836 points.
US Stock Market Crash Spells Trouble for Dollar and Global Markets Global markets started August 5th with a near crisis. Indeed, the stock market suffered from less than favorable US job data. That has only compounded concerns with interest rates in the country still at a 23-year high.
Although the Federal Reserve is expected to cut rates soon, it may be too little too late. The founder of Capriole Fund, Charles Edwards, took to X (formerly Twitter) to discuss the Fed position. Specifically, he noted that “the fed was too slow to tighten in 2021, it looks like they were too slow to ease in 2024.” Moreover, Edwards predicts a recession is incoming.
The BRICS bloc has firmly stood against the dollar for the last couple of years. Many experts have claimed those efforts were done in vain. Yet, these kinds of crises are likely to have many countries thinking. With the alliance developing its payment system, nations could see the benefit of its ongoing actions.