Monetary markets have seen one of the most volatile sessions on Monday and service disruptions at some of the leading brokerage houses. The users of Fidelity and Vanguard also faced problems in accessing their accounts during times of market volatility. It happened at a time when crypto and other markets experienced losses.
Brokerage Firms Struggle Amid Market Turmoil
Bitcoin and the other digital currencies were hit hard, and the total market cap for cryptocurrencies dipped below the $2 trillion mark. As indicated in the CoinGecko data, this dropped by 8% within the next 24 hours. Hedge funds and traders call this day “Crypto Black Monday” because of the substantial market decline.
Bourses also fell, especially traditional markets, with the S&P 500 and Nasdaq Composite losing 2.66% and 3.12%, respectively. This downturn amplified the inherent fear in the market, especially the financial market. Therefore, brokerage firms were under pressure, and increased demand disturbed services.
Fidelity and Vanguard Experience Service Disruptions
Downdetector registered a spike in complaints from Fidelity and Vanguard customers on Monday morning. About 2,879 Vanguard investors and about 4,126 Fidelity investors reported problems. These disruptions happened while the market was declining, which frustrated the investors.
🚨#BREAKING: Multiple brokerages, including Charles Schwab, Fidelity, Vanguard, TD Ameritrade, E-Trade, UPS, CenturyLink, and Interactive Brokers, are currently down and reporting errors amid market crashes. pic.twitter.com/H2htHnXynT
— R A W S A L E R T S (@rawsalerts) August 5, 2024
Robinhood also stopped the 24-hour trading service, citing ‘high volatility’; reports revealed the intention was to control high trading traffic. It is unknown why Fidelity and Vanguard went down, although the current market volatility cannot be ruled out.
Market Turmoil Worsens with Recession Concerns
According to Bloomberg, Goldman Sachs economists increased the probability of a U.S. recession to 25% from 15%. This rise can be attributed to rising concerns about economic stability. Investors’ response was to retreat from physical and paper currencies and other asset classes.
This raised the probability of recession, which worsened the situation in the financial markets. Thus, brokerage companies faced difficulties in meeting users’ demands. A loss in the market and service interruptions created confusion among investors.
Credit: Source link
