World markets fall after the US economy suffered its worst day of the year on June 1 with all signs pointing to more declines over the summer.

“We’re on the verge of a great, great depression,” opined a market strategist Peter Yastrow.

The US market was hit by falls in job growth and manufacturing which in turn abolished quarter of the Dow Jones industrial average's gains for the year thus far. As the markets opened back up on June 2 investors were reluctant to take risks as more bad news regarding the US economy is expected to be released June 3.

The Dow dropped 30 points within the first 15 minutes of open trading as market watchers anxiously await the release of US government job numbers. Thus far reports indicate claims for unemployment benefits did not shrink as much as expected, causing many people to fear a labor market recover simply is not taking place.

“We've been through a couple-week period here where basically every piece of economic data has just been awful,” John Canally of LPL Financial in Boston told the Daily Mail.

Yastrow said he has witnessed “near panic” by investors unwilling to take risks in the volatile markets.

“Interest rates are amazingly low,” he told CNBC. “We’re on the verge of a great, great depression. The [Federal Reserve] knows it.”

“Almost every bit of data about the health of the US economy has disappointed expectations recently,” noted Mike Riddell of M&G Investments.