Stock Market Today: Dow Dives 1,033 Points as Panic Selling Sets In
There were several factors at play in today's broad-market bashing, including recession worries and news Berkshire slashed its Apple stake.


Joey Solitro
It was an ugly start to the week for stocks, with the main indexes notching sharp losses Monday. Today's broad weakness continued last week's selloff and was sparked by a confluence of factors, including concerns the Fed has waited too long to cut rates and the collapse of the carry trade in Japan.
The selling in global markets started late last week after disappointing manufacturing data and a softer-than-expected July jobs report caused concern that the Fed is behind the ball on rate cuts and that a recession could be looming.
Wall Street's jitters were only exacerbated by an unwinding of the carry trade in the Japanese yen. "[O]ver many years, investors have been borrowing in yen to invest in higher-yielding assets," writes the Schwab Center for Financial Research team in emailed commentary. "With interest rates rising [and] the yen moving higher, those trades are no longer profitable, and traders are unwinding them. The unwinding of leveraged trades in risk assets is taking on a life of its own because the size of the trades is large."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
As a result, the Dow Jones Industrial Average plummeted 2.6% to 38,703, the S&P 500 slumped 3.0% to 5,186, and the Nasdaq Composite surrendered 3.4% to 16,200.
Buffett slashes Apple stake
Not helping matters was Berkshire Hathaway's (BRK.B, -3.4%) release of its quarterly filing with the Securities and Exchange Commission (SEC), which showed Warren Buffett's holding company slashed its stake in Apple (AAPL) in the second quarter.
Indeed, the report indicated the market size of Berkshire's Apple stake was valued at $84.2 billion as of June 30. By contrast, Buffett's position in AAPL had a market value of $135.4 billion at the end of Q1.
Buffett & Co. already began trimming Berkshire's Apple stake in Q1. "Why? Because corporate taxes are 'likely' to go up 'later,'" wrote Dan Burrows, senior investing editor at Kiplinger.com, at the time. "He figures the federal government – at some unknown future date – will have to raise taxes to reduce the deficit."
Apple stock finished Monday's session down 4.8%.
Coinbase sells off alongside crypto
Coinbase Global (COIN) was another notable decliner Monday, plunging 7.3% as major cryptocurrencies, including bitcoin and ethereum, declined sharply.
Still, Wall Street remains upbeat toward the stock that has more than doubled on a year-over-year basis. Speaking for the bulls is Oppenheimer analyst Owen Lau (Buy). "We view COIN as an enabler of crypto innovation, which solves some pain points in the existing financial system," Lau wrote in a recent note.
Kellanova, CrowdStrike climb in down day
Not all of the day's price action was lower. Kellanova (K), for instance, climbed 16.2% on news the Pringles maker could be bought by privately owned snack maker Mars. According to The Wall Street Journal, a deal between the two consumer staples firms is reportedly in the works and could value Kellanova at roughly $30 billion.
"We believe a transaction would further validate the power of Kellanova's brands and growth potential, both in North America and internationally," wrote Stifel analyst Matthew Smith. "The transaction would be the largest packaged foods transaction since the Kraft-Heinz merger."
Elsewhere, CrowdStrike (CRWD) stock rose 1.9% after the latest development in the cybersecurity firm's back and forth with air carrier Delta Air Lines (DAL, -4.8). The two have been at odds since a mid-July technical glitch sparked by a CrowdStrike software update disrupted several industries and services. Delta, specifically, had to cancel thousands of flights and is seeking damages from CrowdStrike.
However, a lawyer for the cybersecurity firm released a letter over the weekend that indicated Delta had rejected onsite help during its recent outage and that CrowdStrike's liability is capped in the single-digit millions.
"For a large customer such as Delta, if CRWD's liability risk is in the single-digit millions, the overall risk would be a lot less than feared," says Wedbush analyst Taz Koujalgi.
Related content
- The Fed Is About to Cut Rates. What Should Investors Do?
- Earnings Calendar and Analysis for This Week
- Kiplinger's Economic Calendar for This Week
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
- Joey SolitroContributor
-
Here's Why I'm Upgrading to the iPhone 17
The iPhone 17 is here. Learn what's new, where the best deals are and whether it's worth the switch.
-
September Fed Meeting: Live Updates and Commentary
The September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
September Fed Meeting: Live Updates and Commentary
The September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your Wallet
Interest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your Investments
Don't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can Help
Artificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market Today
Wednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
Hot August CPI Report Doesn't Shift the Rate-Cut Needle: What the Experts Say
The August CPI came in higher than forecast on a monthly basis, but Wall Street still expects a rate cut at next week's Fed meeting.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial Planner
Holding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Beyond Banking: How Credit Unions Serve Their Communities
Credit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.