U.S. index futures fell sharply after a volatile week, with the Nasdaq Composite entering correction territory due to recession concerns and uncertainties about Federal Reserve actions.

At 04:37 AM, Dow Jones futures (DOWI:DJI) dropped 607 points or 1.52%. S&P 500 futures lost 2.16%, and Nasdaq-100 futures declined 3.40%. The 10-year Treasury yield was at 3.761%.

In commodities, oil futures dropped on fears of a U.S. recession, offsetting supply concerns amid Middle East tensions. West Texas Intermediate crude for September fell 0.90% to $72.86 per barrel. Brent crude for October decreased 0.79% to around $76.20 per barrel.

On the U.S. economic agenda for Monday, two significant reports stand out. At 9:45 AM, the final U.S. services PMI for July by S&P will be released. Following that, at 10:00 AM, the ISM services index for July will be announced.

An NBC survey revealed that during the Olympics, American workers might lose about $2.6 billion in productivity. 12.3 million workers will watch the Games during work hours, spending approximately 74 million hours. With an average wage of $35 per hour, this represents a substantial productivity reduction. NBC reported a 79% increase in viewership compared to Tokyo 2021. To minimize the impact, companies might consider allowing employees to watch the Games as a form of engagement and cohesion, offering Olympic-themed events to engage employees and mitigate losses.

Asia-Pacific markets faced sharp declines on Monday, with Japan’s Nikkei 225 and Topix plunging over 12%, confirming a bear market. In Japan, the services sector grew in July with the PMI rising to 53.7 after 21 months of contraction. Domestic demand helped, but weak external demand and high costs continue to pressure businesses. The composite PMI also increased to 52.5, reflecting overall growth. Japan’s wage growth in December fell below expectations but might still lead to the Bank of Japan lifting its negative rate regime. The yen strengthened to 143.10 per dollar.

In South Korea, the Kospi fell 8.1%, triggering a circuit breaker. The Kosdaq suffered an 11.71% loss. Taiwan’s Weighted Index dropped over 8%, dragged down by tech and real estate stocks, and Australia’s S&P/ASX 200 fell 3.5%, with a two-day policy meeting starting Monday.

In China, the services sector expanded faster in July, with the purchasing managers’ index rising to 52.1. The Caixin survey attributes the growth to increased new business and improved demand and services. The Shanghai Composite fell 1.14%.

The U.S. Department of Commerce might propose a ban on Chinese software in autonomous and connected vehicles, also restricting vehicles with Chinese communication modules. The planned rule aims to prevent automakers from using technologies from Chinese firms for vehicles with Level 3 automation and higher, also affecting road tests in the U.S.

European stocks are sharply down due to concerns about a possible U.S. recession. Sectors like technology, mining, and banking show the worst performances. Global volatility intensified, reflected in Japanese market losses and yen strengthening. Earnings data and purchasing managers’ indices from the UK, Italy, and Spain are in focus.

U.S. stocks plunged on Friday, extending Thursday’s losses. The Nasdaq hit its lowest closing level in two months, while the S&P 500 had its lowest close in nearly two months. The Dow Jones fell 1.51%, the S&P 500 dropped 1.84%, and the Nasdaq retreated 2.43%.

Economic concerns and disappointing corporate results, such as those from Intel (NASDAQ:INTC), and Amazon (NASDAQ:AMZN), weighed on Wall Street. The jobs report showed an increase of 114,000 jobs in July, below the expected 175,000, with the unemployment rate rising to 4.3%. This unexpected rise fueled recession fears. The Nasdaq fell 3.4% for the week, while the S&P 500 and Dow dropped 2.1%.

On the quarterly earnings front for Monday, pre-market reports will come from The Carlyle Group  (NASDAQ:CG), Krystal  (NASDAQ:KRYS), Freshpet  (NASDAQ:FRPT), Alpha Metallurgical Resources  (NYSE:AMR), Tyson Foods  (NYSE:TSN), BioNTech SE (BNTX), Axsome Therapeutics  (NASDAQ:AXSM), BioCryst Pharmaceuticals  (NASDAQ:BCRX), and more.

Post-market, numbers are expected from Palantir Technologies  (NYSE:PLTR), Hims Hers  (NYSE:HIMS), Clover Health Investments Corp.  (NASDAQ:CLOV), Lucid Group  (NASDAQ:LCID), Realty Income  (NYSE:O), Avis Budget Group  (NASDAQ:CAR), Teradata Corporation  (NYSE:TDC), CSX Corporation (CSX), Simon Property Group  (NYSE:SPG), Sterling Construction Company  (NASDAQ:STRL), Yum China Holdings  (NYSE:YUMC), ZoomInfo Technologies  (NASDAQ:ZI), among others.