Wall Street's main indexes have slumped as fears of the United States tipping into recession following weak economic data last week rippled through global markets.
The background: Bourses from Asia to Europe took a beating and bond yields slipped as investors rushed to safe-haven assets and bet the US Federal Reserve would need to cut interest rates aggressively to spur growth.
The bigger picture: US Treasury yields fell to their lowest in a year and a closely watched gap between two- and 10-year Treasury notes turned positive for the first time since July 2022, usually indicating US economy is heading into a downturn.
Offering some respite, data showed US services sector activity rebounded from a four-year low in July amid a rise in orders and employment.
The key quote: "The markets are in meltdown and it's a sea of red across the world," said capital.com analyst Kyle Rodda.
What else to know: Australian stocks closed down 3.7 per cent on Monday, wiping more than $100 billion from the stock market.
Read more: Interest rates decision: This is the likely path the Reserve Bank will take, economists say
