Robinhood Halts 24-Hour Trading as Global Markets Plunge

Trading platform Barchart announced on X that Robinhood (NASDAQ: HOOD) has suspended its 24-hour trading service amid significant declines in European and Asian stock markets due to fears of a U.S. economic slowdown.

Japanese stocks plummeted 13%, the steepest drop since the 2011 financial crisis, triggering circuit breakers across Asian exchanges. The Asia-Pacific index, excluding Japan, fell 4.2%, while Japan’s Nikkei 225 hit seven-month lows.

In the U.S., Nasdaq futures dropped 4.7% and S&P 500 futures fell 12.4%. European markets were also hit, with EUROSTOXX 50 futures down 2.1% and FTSE futures falling 1.2%.

As investors sought safe havens, the yen and Swiss franc surged. Japanese 10-year bond yields fell to 0.785%, their lowest since April. U.S. Treasury yields also dropped, with 10-year yields at 3.723% and two-year yields at 3.807%, further inverting the yield curve, indicating a potential recession.

Market expectations for Federal Reserve rate cuts increased following a weak July payrolls report. Analysts now predict a 78% chance of a rate cut in September, with more cuts expected later in the year. Goldman Sachs raised its recession odds to 25% based on current conditions.

The U.S. dollar’s safe-haven appeal declined, falling 0.4% against a basket of major currencies. It also weakened against the yen and euro, while the Swiss franc gained. Gold prices rose to $2,456 an ounce as investors turned to precious metals for safety.

The selloff underscores ongoing market concerns and highlights the importance of monitoring upcoming economic data and corporate earnings reports.