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."

Sign up for Kiplinger’s Free E-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
Get Kiplinger Today newsletter — free
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
-
Where to Invest in an Uncertain Market
In an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
How to Budget for College Expenses Beyond Tuition
Some universities waive tuition for families with incomes below a certain threshold. But you'll still need a plan to cover other costs.
-
Where to Invest in an Uncertain Market
In an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My First $1 Million: Events Industry CEO, 65, Northern New Jersey
Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?
Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Stock Market Today: Investors Look on the Bright Side
A generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies Now
Stock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Such Attractive Yields in High-Grade Munis Are Rare and May Not Last Long
According to this munis expert, the last time munis were this cheap was a brief period in 2023. If you kicked yourself for missing out then, you have a second chance now.
-
Financial Analyst Sees a Bright Present for Municipal Bond Investors
High-tax-bracket investors have an excellent opportunity to secure low-volatility, high-quality returns at yield levels rarely seen in over a decade.
-
I'm an Insurance Pro: How Not to Get Dumped by Your Insurance Agent
Your insurance agent or broker might show you the door if you do any of these five things. Being a good customer is about more than paying your bill on time.