The market took a major hit Monday morning when the Nasdaq opened at -6%. A combination of worrying factors led to a $CBOE Volatility S&P 500 Index (.VIX.US)$ climbing 120% at one point.

Just past 9:50 am ET the   $S&P 500 Index (.SPX.US)$ fell 3%, the   $Dow Jones Industrial Average (.DJI.US)$ fell 2.49%, and the   $Nasdaq Composite Index (.IXIC.US)$ fell 3.94%.

The turbulence began last week after multiple earnings reports from the largest companies did not meet estimates. Then, after the meeting, minutes of Japan's head Bank showed some members wanted to raise rates, the $Nikkei 225 (.N225.JP)$ fell 12% in a day, the worst since the 1980s. The U.S. market was already down Friday by about 3% on each index, and further stress pushed it over the edge. The Middle East conflict between Isreal and Iran also contributed to stress, when the conflict threatened to inflame further over the weekend when Iran pledged to attack.

Last week's macro numbers showed US Jul. on Friday. Non-farm payrolls added 114k jobs vs 175k forecast and 179k in June, according to the Bureau of Labor Statistics. The unemployment rate in July rose to 4.3%, compared to 4.1% last month. The Federal Reserve has looked extensively at the labor market as an indicator of its monetary policy and appetite for rate cuts.

Thursday, according to the Labor Department, Initial applications for US unemployment benefits jumped to 249,000 last week, the highest level in a year. Continuing claims, a number that is analogous to unemployment, rose to 1.88 million, the highest since 2021.

The FOMC left rates unchanged last Wednesday, and after the release at 2 pm ET, Federal Reserve President Jerome Powell answered press questions and said if all goes well, the FOMC would consider a rate cut in September.

"For example, if inflation was moving down quickly or in line with expectations, growth remains reasonably strong, and the labor market remains consistent with its current condition, then I would think that a rate cut could be on the table at the September meeting,' Powell said.

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