Stocks sink with bond yield and dollar on recession fears | U.S. & World [Video]

By Sinéad Carew and Nell Mackenzie

NEW YORK/LONDON (Reuters) -Global equities suffered heavy losses on Monday as Wall Street joined a global stock rout that started in Japan while the dollar tumbled against the yen and U.S. Treasury yields dropped on concerns about a recession in the United States.

Oil prices also fell in a volatile session on Monday, hit by recession fears, but declines were buffered by worries that escalating Middle East conflict could hit crude supplies.

CBOE’s volatility index, known as Wall Street’s fear gauge, pared gains and was last up 12.5 points at 35.98 after jumping 42 points earlier to 65.73, its highest level since March 2020, during the global COVID-19 pandemic.

Earlier Japan’s benchmark Nikkei average had closed down 12.40% for its largest one-day fall since October 1987.

A weaker than expected U.S. payrolls report for July had started a Wall Street sell-off on Friday when investor bets for a Federal Reserve …