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The Guardian - AU
The Guardian - AU
Business
Jonathan Barrett

Share market chaos explained: what’s behind the stock meltdown and will there be a recession?

A trader works on the floor of the New York Stock Exchange after a global sell-off of shares sparked recession fears.
A trader works on the floor of the New York Stock Exchange after a global sell-off of shares sparked recession fears. The Nasdaq and S&P 500 also lost ground on Monday. Photograph: Charly Triballeau/AFP/Getty Images

Fears of a US recession have gripped global markets, triggering a share market rout that prompted investors across Asia, Europe and North America to all unwind their positions – at the same time.

The severe plunge has raised questions over whether investors are facing a historic share market crash – similar to the global financial crisis or 1987’s Black Monday – or if it’s simply an overdue pull-back after a stellar period of strong returns.

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