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Markets rallied as investor panic over a slowdown in the world's biggest economy faded - but there were warnings that there could be more to come. Weaker-than-expected jobs data and concerns that American tech giants are overvalued saw stocks tumble around the world on Monday.

Global markets were in meltdown yesterday as investors were spooked by the prospect of an economic slowdown in America. Traders bet that the US central bank will be forced to announce an urgent rate cut before a scheduled September meeting as stocks tumbled around the world. It came after Japan's stock market suffered its biggest one day fall in more than 30 years.

Stock markets around the globe have continued to plunge on Monday amid fears the US economy may be on track for a recession as Japan suffered its worst sell-off since 'Black Monday' in 1987. Experts at investment bank Goldman Sachs said they now believed there was a staggering 25 per cent chance of a recession in the US - up ten percent from their previous estimate of 15 per cent, while JP Morgan put the chances of a recession at 50 per cent. US stock index futures tumbled on Monday, with those tied to the Nasdaq falling nearly 4 per cent, but traders are now ramping up bets that the Federal Reserve will announce an emergency interest rate cut in response to the global stock market crash and to avoid a huge recession. The sell-off followed the release of a dismal unemployment report last week. Employers added just 114,000 jobs last month, according to Labor Department data released Friday, far below the Dow Jones estimate of 185,000.

As the Bank of Japan sought to boost the moribund economy, the rise comes after eight years of sub-zero rates. It's the last central bank to have zero negative rates, a strategy that has also been pursued by the European Central Bank, as well as counterparts in Switzerland, Sweden, and Denmark.

According to new estimates, the combined earnings of America's top tech companies exceeded the sum of firms listed in virtually every other G20 country last year. According to a Deutsche Bank review, Apple, Amazon, Alphabet, Meta, Google, Nvidia, and Tesla largely dwarfed the profits earned by foreign companies in the sector, which accounts for 75% of global trade. When all their earnings are added, only China and Japan had higher returns than the 'Magnificent Seven'. Despite this, Deutsche estimates that M7's market cap will make it the second-largest country stock exchange in the world.

Fitch, a rating company, has downgraded the US government's credit rating, bringing it down a notch from the top AAA grade to AA+. The surprise move comes just two months after the agency warned that the rating was in danger as senators debated over raising the country's debt ceiling - before averting what would have been a first-ever default. 'In Fitch's view, governance has been gradually degraded over the last 20 years,' the rating agency said in a tweet.' It justified the downgrade by arguing that the country's finances would likely decline as a result of rising debt burden and political instability. DailyMail.com explains everything you need to hear about the decision and the effects it has on customers.

The Dow Jones Industrial Average had soared for the first time in 126 years before snapping the historic winning streak on Thursday and plummeting in a single day. Meta soared eight percent off the back of a positive earnings survey on Wednesday, posting its 13th straight day of gains. After being on track to close for the 14th straight session, the blue-chip index dropped 237 points or 0.7 percent. The S&P 500 also dropped by 0.6 percent as the Nasdaq Composite, the tech-heavy Nasdaq Composite dropped by 0.5 percent. The Dow Jones Industrial Average dropped by 0.7 percent. If the Dow had closed on Thursday and Friday and notched 15 days of gains, it would have been the longest daily winning streak since May 1897.