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Dow Jones CRASH: Is the Dow Jones falling a sign of the next global financial crash?

The Dow Jones tumbled by more than 700 points, just two days after the market sank by 800 points on Tuesday.

Losses over the last two trading days – Wednesday’s market was closed due to the funeral of George HW Bush – totalled more than 1,500.

The S&P 500 also dropped by 67.8 points, around 2.51 percent, to 2,632.26.

Meanwhile, the Nasdaq Composite dropped 139.83 points, or 1.95 percent, to 7,018.60.

And the financial woe was not just felt in New York but around the world as stock markets also took a global tumble.

These included London where the FTSE crashed to its lowest level since July 2016, closing by 3.15 percent to 6,704 points.

Is the Dow Jones falling a sign of the next global financial crash?

Today’s tumultuous trading has fuelled fears of a new global recession or massive economic slump.

The price slides are being blamed on the ongoing US-China trade dispute, pulling in other regions.

Both nations agreed a 90-day ceasefire at the weekend, as agreed by US President Donald Trump and Chinese President Xi Jinping.

But sanctions remain in place and tensions were stoked today after it emerged a top financial executive from Chinese tech company Huawei is being detained in Canada.

Steve Okun, senior advisor at McLarty Associates, told CNBC earlier “the trade war is still on”.

Banking group UBS earlier played down fears of a global recession, saying while markets may be weaker, other significant factors were not.

UBS Group head of Hong Kong equities Eva Lee said current consumerism rates, employment growth and investment are “not historically consistent” with a potential recession, as reported by Taipei Times.

This is despite her prediction that expected global GDP growth would slow to 3.6 percent from 3.8 percent in 2018.

But investors will also be paying attention to US jobs data due out tomorrow.

If figures show weakness then the market is likely to react, according to Shuji Shirota, HSBC’s head of macro economic strategy.

And the slump of oil prices is also a major concern.

There was a dip of 4 percent to £$50 a barrel after the OPEC (Organisation of the Petroleum Exporting Countries stalled on a supply announcement.

The OPEC said a deal is being sought but has not been agreed so far – and any developments could see a significant effect on the global stock markets.

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