S&P loses £1.87 trillion whilst Dow Jones plummets 900 points – London Business News | Londonlovesbusiness.com

On Monday the Dow Jones plummeted 900 points and an expert has warned that within months the US will be in a recession, unless the central banks cut interest rates.

Steven Blitz the chief US economist at TX Lombard warned the Fed could be “too late” as the Dow was down by a whopping 900 points.

As the New York Stock Exchange opened on Monday at 2.30pm UK time, the Dow Jones slid 2.7%, this is one of the largest falls in history, and stocks in tech were hit the worst as the Nasdaq fell 6%, whilst the S&P plummeted by around £.187 trillion.

Blitz told BBC’s Business Today there may not be a recession if the Fed cuts interest rates.

He added, “It’s not a recession, but the economy is weakening,” however he said that the US should take note of the stock markets as “by the end of the year” there “will be recession,” GB News reported.

Janet Mui, head of market analysis at investment management firm RBC Brewin Dolphin has suggested that if the US does enter a recession this could lead to lower mortgage rates in the UK.

She told Sky News on Monday afternoon said if the Fed cuts interest rates then the Bank of England will be under pressure “to cut interest rates further,” this would be welcomed for those with mortgages.

“If you have a floating rate mortgage, you could potentially see more relief down the line.

“And if you’re going to remortgage or have a new mortgage, I think you’re very likely to be getting a much lower rate.”