The data fueling investor concerns as stocks plunge on recession fears

Amna Nawaz:

And in other major business news, global markets started the week in a tailspin amid concerns that the U.S. economy could be sliding towards a recession.

On Wall Street, the Dow Jones industrial average had its worst day in nearly two years, dropping more than 1,000 points. The Nasdaq lost more than 500 points on the day. The S&P 500 dropped 160 points, or exactly 3 percent.

Globally, the Japanese stock market dropped more than 12 percent, its biggest percentage drop since the late 1980s, while sell-offs spread to other markets in Asia and Europe, which are facing slowdowns of their own.

To discuss what this means, I’m joined now by David Wessel. He’s director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution.

David, welcome back. Good to see you.

So why that sudden plunge in global markets overnight? What was fueling that?