U.S. markets tumble after weak jobs report prompts recession fears

U.S. stock markets tumbled Monday following a weak July jobs report, sparking fear of a recession.

The Dow Jones Industrial Average was down over 1,000 points, about 2.3%, when U.S. markets opened at 9:30 a.m. Eastern Time. 

Nasdaq went down 6% and the S&P 500 dipped 4.2%.

The selloffs were preceded by Japan’s benchmark stock index dropping by 12.4% earlier Monday.

The U.S. Labor Department's July jobs report showed the U.S. economy added just 114,000 jobs, which was far fewer than Wall Street analysts had forecasted. In addition, the unemployment rate increased to 4.3%, compared to 4.1% in June.