Payam Javan: On August 5, Japanese stocks experienced their largest drop since the 1987 Black Monday crash, with the Nikkei 225 index plummeting by 12.40 percent, or 4,451 points. This decline, the steepest in the index’s history, follows concerns about the global economy and the potential for a recession, compounded by dismal U.S. job data and a strengthening yen. Japan’s banking stocks were particularly hard-hit, pushing the Nikkei into bear market territory with a 27 percent drop from its July peak, erasing 113 trillion yen ($792 billion) in market value.

In the U.S., the Department of Labor’s report showing a significant slowdown in job growth last month has contributed to market instability. The Dow Jones Industrial Average futures fell by about 600 points, or 1.5 percent, while the Nasdaq-100 dropped 3.4 percent. U.S. Treasury yields also declined, with the 10-year note yielding 3.79 percent. Bitcoin also fell below $50,000 for the first time in months. Federal Reserve Chairman Jerome Powell suggested that rate cuts might be forthcoming as the economy progresses toward its inflation targets, reflecting ongoing concerns about economic health and inflation.