STORY: Wall Street's main indexes ended sharply lower on Monday as U.S. recession worries shook global markets and drove investors out of risky assets.

The Dow dropped 2.6%, the S&P 500 shed 3% and the Nasdaq nosedived nearly three-and-a-half percent.

The recession concerns followed weak economic data from last week, including Friday's soft nonfarm payrolls report.

But Kevin Nicholson, global fixed income chief investment officer at Riverfront Investment Group, said one underwhelming jobs report was hardly enough to justify Monday's widespread panic.

"I do believe that the markets reaction today has been over exaggerated and and overdone. And the reason for that is that the Fed has stated that they're data dependent. We have, we know that they have a bias towards cutting in September. They left that door open last week. However, I think right now the market is pricing in five rate cuts through the end of the year. And I think that that's exorbitant because you're basing this off of one data point, and we still have several more CPI prints to come as well as an additional nonfarm payroll report."

U.S. Treasury yields tumbled to their lowest level in a year and a closely watched gap between two- and 10-year Treasury notes turned positive for the first time since July 2022, usually indicating the economy is heading into a downturn.

Traders now see a more than 90% probability that the U.S. central bank will cut rates by 50 basis points in September, according to CME's FedWatch Tool.

Recent disappointing forecasts from the big U.S. tech companies added to fears, with the Nasdaq last week sliding into correction territory.

Shares of Apple fell 4.8% on Monday after Warren Buffett's Berkshire Hathaway halved its stake in the iPhone maker.

The billionaire investor also let Berkshire's cash position soar to $277 billion.

Tech giants Nvidia, Microsoft and Alphabet also slid.

Among the companies that bucked Monday's downturn: Pringles maker Kellanova, which soared more than 16% after a Reuters report said candy giant Mars was exploring a potential buyout of the company.