Hold tight and get ready for stock markets to take a tumble.
Here are the four things you need to know before the opening bell rings in New York:
1. Red, red red: U.S. stock futures were making significant moves lower and global markets were all in the red as investors worry about America’s military moves in Iraq and an escalating trade war with Russia.
U.S. President Barack Obama has authorized “targeted airstrikes” in Iraq to protect American personnel and help Iraqi forces. Concerns are growing about a humanitarian crisis in Iraq where minority groups are facing possible slaughter by Sunni Muslim extremists.
European markets were all declining about about 1% in early trading, and the Dax in Germany plunged into correction territory. The benchmark index has fallen by about 11% since its peak in late June as investors worry about the effects Russian sanctions will have on the German economy.
Nearly every Asian stock market index also closed in negative territory. The Nikkei in Japan dropped by 3%.
Needless to say, the CNNMoney Fear & Greed index is pointing to ‘extreme fear’.
2. Thursday market recap: U.S. stocks fell over the previous trading session. The Dow Jones industrial average closed down 75 points while the S&P 500 and Nasdaq both lost about 0.5%.
It’s worth noting that the Dow has fallen by about 5% since mid-July.
3. Stock market movers — Zynga, tech stocks: Shares of game maker Zynga plunged in extended trading after the company reported a loss for its second quarter. A variety of big tech companies including Google and Facebook were also seeing their shares decline in premarket trading, in line with market sentiment.
Tesla was down about 1% despite resolving a trademark dispute that threatened its growth in China.
4. Earnings and economics: Sotheby’s is among the key companies reporting second quarter earnings before the opening bell.
On the economic front, the Bureau for Labor Statistics will release a report on worker productivity for the second quarter at 8:30 a.m. ET.
