Weak jobs report and rising unemployment fuel market selloff, raising concerns over Federal Reserve’s rate cuts and potential economic slowdown ahead of the presidential election.
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The selloff continues in the markets as a weak jobs report fueled worries the Federal Reserve has been acting too slow when cutting interest rates. A risk of economic slowdown comes at the heels of the upcoming presidential election. Unemployment rates have risen to an all time high in almost 2 years, causing the NASDAQ to tumble by 10% from its initial peak. “Bad news is no longer good news for stocks” said John Lynch at the Comerica Wealth Management. Many are now thinking the Fed has been too slow to act when it comes to rate cuts.
Concerns of the US potentially sliding into a recession spurred a global sell-off which was accelerated by the recent US jobs market report. 114,000 jobs were created last month compared to 175,000 jobs that were expected by analysts. Unemployment rates have risen to 4.3% from 4.1%. Both of these data reports have a massive impact on how the market has reacted this early trading morning. Investors are continuing to worry about the US economy and they think it is weaker than the banks and Fed realize.
