04:28 PM EDT, 08/05/2024 (MT Newswires) -- US benchmark equity indexes tumbled Monday, following a steep sell-off in the previous session, amid concerns of an economic downturn.

The Nasdaq Composite plunged 3.4% to 16,200.1 after having entered correction territory Friday. The S&P 500 slid 3% to 5,186.3, while the Dow Jones Industrial Average dropped 2.6% to 38,703.3. All sectors posted sharp losses, led by technology's 3.8% slump.

The Bureau of Labor Statistics on Friday reported a weaker-than-expected jobs report for July. The unemployment rate increased to 4.3% from June's 4.1%. The report triggered a broad stock market selloff and stoked concerns about a potential recession.

"Global stock markets plummeted, with Japanese shares at one point surpassing their 1987 'Black Monday' decline, as concerns about a US recession drove investors away from risk," D.A. Davidson said in a Monday note to clients.

However, multiple analysts said recession fears are overblown as recent labor market data aren't as bad as they seem, while income growth continues to support spending.

The US 10-year yield fell 1.5 basis points to 3.78% Monday, while the two-year rate added 2.3 basis point to 3.89%.

In economic news, two surveys painted a mixed picture of the US services sector for July, with the Institute for Supply Management's data showing that activity expanded more than expected, while S&P Global ( SPGI ) indicated a slight deceleration in growth.

Last week, the ISM reported that the US manufacturing sector entered deeper into contraction on a monthly basis last month, while S&P Global ( SPGI ) data showed activity turning negative.

West Texas Intermediate crude oil rose 0.3% to $73.77 a barrel Monday.

Walt Disney ( DIS ) , Eli Lilly ( LLY ) , Amgen ( AMGN ) , Caterpillar ( CAT ) , Uber ( UBER ) , CVS Health ( CVS ) , Paramount Global ( PARAA ) and Hilton Worldwide ( HLT ) are among the major companies scheduled to release their latest quarterly financial results later in the week.

In company news, Intel ( INTC ) shares slid 6.4%, the steepest decline on the Dow and the Nasdaq and among the worst on the S&P 500, following a 26% slump Friday. The chipmaker on Thursday reported Q2 financial results that fell short of Wall Street's views. The company outlined a $10 billion cost-cutting plan and said it will suspend dividend starting in Q4.

Nvidia ( NVDA ) was among the worst performers on the S&P 500 and the Nasdaq, down 6.4%. The company's new artificial intelligence chips could be delayed due to design issues, potentially affecting major customers such as Microsoft ( MSFT ) , Meta Platforms ( META ) and Alphabet's (GOOG, GOOGL) Google ( GOOG ), the Information reported Friday.

Mars, the company behind M&M's and Snickers, is considering buying snacks maker Kellanova ( K ) , multiple news outlets reported. Kellanova ( K ) shares jumped 16% Monday, the top gainer on the S&P 500.

Tyson Foods ( TSN ) followed Kellanova ( K ) on the S&P 500, up 2.1%, after the meat producer's fiscal Q3 results rose more than expected year over year, buoyed by price and volume gains in beef and pork. The company reiterated its full-year sales outlook.

Gold fell 0.8% to $2,449.50 per troy ounce, while silver lost 3.8% to $27.31 per ounce.