Yesterday, the actions were submerged after a weak report of manufacturing activity for July, which showed the lowest reading in eight months for the largest economy in the world. This recession has fed concerns that the Federal Reserve’s decision not to reduce interest rates could be stopping growth and increasing the risk of a recession. Jamie Cox, managing partner of Harris Group Financial, said: “Investors are dealing with manufacturing data represent a unique event or a slow slide towards a recession.”
In addition, worrying employment data exacerbated market fears. The reports indicated weaker unemployment claims than expected and a remarkable decrease in corporate hiring intentions, the lowest since 2012.
The bond market, generally a refuge for investors during agitation of the stock market, also reflected the growing anxiety. The yields of the treasure bonds fell sharply, with 10 -year note yields that fell below 4% for the first time since February, now to 3,942%. Similarly, the yields of 2 years, which are more sensitive to changes in the interest rate, fell to 4,115%, the lowest since May of last year.
The Fedwatch tool of the CME Group indicates a probability of 29.5% of a significant cut of the food rate of 50 basic points in September, which highlights the anticipation of the market of more aggressive measures to counteract the economic deceleration.
Today’s approach will be in the July Employment Report, which is expected to show another decrease in moderate salary contracting and salary growth. The initial predictions of 177,000 new jobs have been reviewed at a range of 140,000 to 180,000, reflecting the weakest data of the week.
In Wall Street, futures suggest a gloomy beginning with the S&P 500 that is expected to open 69 points lower. It is projected that the Dow Jones industrial average decreases 425 points, and the technological heavy nasdaq is established for a decrease of 350 points.
In the company’s specific news, Apple (AAPL) shares increased 0.4% prior to the market after informing better profits than expected of the third quarter and positive sales and margin margin and margin forecasts. On the contrary, Amazon (AMZN) saw a 8.5% drop after a mixed gain report of the second quarter and plans for a higher capital expenditure on AI projects.
Intel (INTC) shares collapsed more than 20% of the levels prior to the market, hitting the levels not seen since the mid -1990s. The chips manufacturer announced a sales prognosis off, plans for a reduction in the workforce of 15% and suspended its quarterly dividend.
European markets also faced decreases, with the Stoxx 600 regional less than 1.67% and the FTSE 100 of Great Britain falling 0.52%. In Asia, Nikkei 225 of Japan experienced its greatest drop of a single day from the pandemic, falling 5.08%, while the broader topix index had its worst day since 2016. The point of reference MSCI Asia Ex-Japan closed 2.44% lower.
Also read: Stock market update: S&P 500 and Nasdaq win after the Fed Decision, Meta Shares arises
(Tagstotranslate) Declace of the US Stock Market