Concerns about a U.S. economic slowdown helped fuel a massive loss in Japanese stocks.

CNN reported Monday that the Nikkei 225 index of leading stocks in Tokyo lost 4,451 points, which was the largest single-day drop in its history.

The report noted that “the index closed more than 12% down, bringing its losses since early July to 25% and entering bear market territory.”

CNN explained, “Fears of a sharp slowdown in the US economy have raised expectations that the Federal Reserve will have to slash interest rates. Coming as the Bank of Japan (BOJ) takes its interest rates higher to contain inflation, that is boosting the value of the yen against the US dollar and making Japanese export-dependent stocks less attractive.”

“At the same time, tech stocks are being hammered by a combination of mixed earnings and increasing skepticism among some investors about the hype around artificial intelligence,” it added.

Additionally, the sell-off triggered circuit breakers — which pause trading to avoid panic selling — several times in Japan and South Korea.

Stephen Innes, managing partner of SPI Asset Management, told the outlet, “The buzz is all about the contagion effect of this aggressive bear onslaught, underscored by fears of a hard landing in the US and a severe meltdown in Tokyo’s markets, which now appear to be self-perpetuating.”

CNN added, “The volatility spread to other markets in Asia and Europe, and US stock futures fell sharply overnight. Nasdaq futures were down 4%. Dow futures and S&P 500 futures were down 1.5% and 2.3% respectively.”

The losses come after the U.S. reported adding just 114,000 jobs in July, down from the expected 175,000, and as the unemployment rate rose to 4.3%, adding to concerns about a slowdown.

On Monday morning, former President Donald Trump posted on Truth Social, “STOCK MARKETS ARE CRASHING, JOBS NUMBERS ARE TERRIBLE, WE ARE HEADING TO WORLD WAR lll, AND WE HAVE TWO OF THE MOST INCOMPETENT ‘LEADERS’ IN HISTORY. THIS IS NOT GOOD!!!”