Posted on 08/02/2024 10:05:25 AM PDT by lasereye
US stocks tumbled across the board on Friday after the July jobs report showed more cooling in the labor market, fueling concerns the Federal Reserve's "higher for longer" interest-rate stance might end in recession.
The Nasdaq Composite (^IXIC) dropped 2.9% after the jobs report's release. That plunged the tech-heavy index into correction territory, more than 10% below its recent high in early July.
The Dow Jones Industrial Average (^DJI) slumped nearly 2.4%, or close to 1000 points, as a flight from stocks accelerated. The S&P 500 (^GSPC) sank 2.5%.
Stocks kicked off August with a sell-off after a clutch of data on Thursday showed cracks emerging in the US economy, wiping out gains spurred by expectations for a September interest-rate cut.
Wall Street has been wondering whether the economic slowdown shown in recent data means the Federal Reserve has kept interest rates at historic highs for too long, risking a recession.
The US economy added fewer jobs than expected in July, while the unemployment rate unexpectedly rose to 4.3%, the Bureau of Labor Statistics' nonfarm payrolls report for July showed. Those additional signs of a slowdown in the labor market are likely to feed recession fears and rate-cut expectations.
Traders are pricing in three rate cuts this year — in September, November, and December — and bets are on a 50 basis-point reduction in September. The yield on the benchmark 10-year Treasury (^TNX) dived further below the 4% level after the labor-market update, trading around 3.84%.
Meanwhile, Amazon stock slid almost 10% on the heels of sales guidance that undershot Wall Street estimates. Apple (AAPL) shares were a relative winner, up 1% after the company beat on earnings even as it reported a slide in iPhone sales.
(Excerpt) Read more at finance.yahoo.com ...
We are seeing the "R" word a lot in the financial media (but not in the rest of the media). The Trump campaign should talk about it.
All true and they are now factoring in fear of a Trump loss.
I thought they would prop up the economy by any artificial means necessary until after the election of Trump. But maybe their facade is cracking prematurely.
You cannot print cargo ship loads of money forever without an eventual collapse of the currency.
disappointing jobs report increases odds of rate cut which is bullish
The prospect of Socialist leaning Kamaltoe becoming President has nothing to do with the stock market decline???
If the market in general is a house of cards NASDQ is worse than a roulette wheel.
Weird. I would have thought the opposite would happen since a bad job report will increase the chance of the Fed lowering interest rates which the market likes.
This decline won’t last once the fed actually lowers the rate.
Bloomberg was just saying that BofA and JP Morgan are pricing in 2 50basis point cuts in September and November.
Talk that the market is telling the Fed they messed up by not cutting this week.
I think Powell and company disappoint in September, either holding steady - which the job numbers today say now that is unlikely no matter what oil is doing due to ME issues - OR only cuts 25 basis points which the market will see as a disappointment - even though that was being priced in earlier this week as expected.
Thinking we get a bounce Monday, unless something big happens over the weekend. 2 weeks to the next set of inflation numbers.
Well only some of the market is factoring in a Trump loss - DJT is up nearly 7% today, Fox business was saying that was because the market drop and jobs numbers will likely help him.
Definitely time to buy the dip. This increases the odds of the fed lowering the rates, which, as you say, the market likes.
Historically market crashes come shortly after the Fed starts cutting and the yield curve reinverts.
Part of the amazon thing could be talk of a tax or fee, on deliveries. , the media was showing an Amazon truck, while I would bet that in Seattle they were talking about a fee o take outs, with the new minimum wage about to go into effect.
After the last 3 1/2 years the “R” word is on the slope many are dumping stocks and buying bonds.
Not many sure bets out there
He’s up 7% where? A poll or betting?
Wreaked havoc on my energy plays today. I suspect we get some aggressive rate cutting in the near future.
Yes, my thoughts on gold and oil is the next few weeks should provide some buying opportunities. Recession sensitive areas like airlines and telecommunications I’m not sure if we get a bounce in them...And then I could be wrong and we get rebound Monday...sort of doubt it as we also saw China revise growth downward and the R news is pretty serious.
But wouldn’t a currency collapse lead to crazy-high nominal valuations?
Stock DJT (Trump Media & Technology Group) is what I was referring to....at the time of my post it was about 6.9% it closed at 7.39% up :)
Ty I just was hoping Trump was up 7.
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