[News Today] FEARS OVER U.S. RECESSION

[LEAD]
It wasn't just the domestic stock market that plunged, all Asian, American, and European markets tumbled. This can be attributed to several factors, like, fears of a U.S. economic downturn, doubts about Big Tech companies, and geopolitical uncertainties.

[REPORT]
The leading cause of the stock market crash is concerns over a recession due to worsening U.S. economic indicators.

As the unemployment rate in the U.S. surged, some even mentioned the so-called Sahm Rule.

The theory states that a recession occurs if the average unemployment rate over the past three months is more than 0.5 percentage points higher than the lowest point in the past year. Given its high accuracy in the past, this has heightened market fears.

Sluggish American tech stocks are also adding to investors' anxiety.

Eric Lynch / Scharf Investments

Escalating Middle East tensions coupled with uncertainty ahead of the U.S. presidential election have resulted in a domino collapse.

Seo Sang-young / Mirae Asset
There is panic selling going on in the market. As investors keep selling, stock
prices are plunging further.

With shifts in major countries' monetary policies, elections, and global corporate earnings reports, external volatility is high and outcomes are difficult to predict.

Kim Hak-kyun / Shinyoung Securities
Stock prices will rebound someday, and it will be sooner than later. Investors
should wait and see rather than selling their stocks too cheap.

Financial authorities say the Korean economy has the capacity to respond to external vulnerabilities and are urging investors to exercise caution.