Robinhood halts trading amidst global market meltdown

Investing.com -- Trading platform Barchart said on social media platform X that Robinhood (NASDAQ:HOOD) has suspended its 24-hour trading service. This decision comes as stock markets in Europe and Asia are experiencing significant declines due to fears of a US economic slowdown.

Japanese stocks experienced a dramatic drop of 13%, the largest decline since the 2011 global financial crisis. This massive sell-off led to circuit breakers being triggered across Asian exchanges. The broad Asia-Pacific index, excluding Japan, fell by 4.2%, and Japan's Nikkei 225 index hit seven-month lows.

In the U.S., the negative trend continued with Nasdaq futures down 4.7% and S&P 500 futures plunging 12.4%. European markets were also affected, with the EUROSTOXX 50 futures dropping 2.1% and FTSE futures falling 1.2%.

As investors sought safe havens, the yen and Swiss franc surged. Japanese 10-year bond yields fell to 0.785%, their lowest since April, while U.S. Treasury yields dropped significantly, with 10-year yields hitting 3.723% and two-year yields down to 3.807%, further inverting the yield curve—a sign of potential recession.

Market expectations for Federal Reserve rate cuts increased following a weak July payrolls report. Analysts now predict a 78% chance of a rate cut in September, with additional cuts anticipated later in the year. Goldman Sachs has raised its recession odds to 25% based on current conditions.

The U.S. dollar’s safe-haven appeal waned, falling 0.4% against a basket of major currencies. The dollar also weakened against the yen and euro, while the Swiss franc gained. Gold prices rose to $2,456 an ounce as investors sought refuge in precious metals.

Overall, the selloff highlights ongoing market concerns and underscores the need for close attention to upcoming economic data and corporate earnings reports.