Yahoo TV

STORY: Wall Street's main indexes plunged on Monday amid a global stock market meltdown.

The selloff in the U.S. pummeled the Magnificent Seven stocks including Apple, Nvidia and Amazon - the main drivers of the S&P 500's gains this year - set to lose a combined $650 billion in market value.

It follows U.S. economic data last week, including a weaker-than-expected jobs report, that stoked recession fears.

Bond yields slipped as investors bet the U.S. Federal Reserve would now need to cut interest rates more aggressively than expected to spur economic growth.

But Scott Wren, senior global market strategist at Wells Fargo, doesn't believe that's necessary - and said the selloff was mostly an overreaction to a cooling economy that he believes will avoid a recession.

"I think we have a combination of a growth scare and a Fed policy scare. So, in other words, we went from, you know, months and months of 'When's the Fed going to ease and how much are they going to ease' this year and next to one where growth is plunging and the Fed is behind the curve. So, we've had a change in attitude. It's been based on, you know, some weakening data. [FLASH] So in our opinion, is the economy slowing? Yes. Is there any need for an emergency Fed cut? It doesn't look like it in our opinion."

The market pain eased a bit as the day progressed and stocks pared losses after data showed U.S. services sector activity in July rebounded from a four-year low amid a rise in orders and employment.

But jitters pervaded, particularly among banks stocks and Big Tech.

Online brokerages including Charles Schwab and Vanguard reported service disruptions, frustrating investors looking to trade on a day when many sought to dump anything risky.

Bitcoin fell more than 15% on Monday amid the frenzied selling, and U.S.-listed shares of crypto-linked companies slumped.

Oil also fell on Monday despite worries that a spreading conflict in the Middle East could further hit crude supplies.

Analysts at Goldman Sachs now see a 25% likelihood of a U.S. recession. But JPMorgan analysts were more bearish, saying they saw a 50% chance of a recession.