The Asian market, particularly in Japan, is closing with the second largest drop since the 1987 crisis, with the Nikkei down 12.40% and dragging down all Asian indices. In Europe, the DAX is also trading 3% negative, London’s FTSE -2.6%, the French CAC minus 2.4% and the US futures are also down, the S&P 500 at 3.4 and the Nasdaq down almost 5%. This marks the beginning of a week tinged with red and from which Argentine assets will not escape.
It so happens that Wall Street plummeted on Friday, setting the most volatile period the market has seen in more than a year. The S&P 500 lost 1.8% to close lower for a third straight week, its longest losing streak since April.
The VIX (middle index) soared to the highest level of the year on Friday after data showed the US unemployment rate jumped to 4.3% in July and in the past 10 trading days, there have been six sessions in which the S&P 500 rose or fell more than 1%, the most since November.
At the same time, investors are increasingly concerned about the state of the US economy. Federal Reserve Chairman Jerome Powell, may have opened the door to a September rate cut at a news conference earlier this week, but a relatively abrupt slowdown in the labor market has led some to wonder whether it is already too late.
Friday’s employment report triggered the Sahm rule, a recession indicator based on how quickly the unemployment rate rises. This states that if unemployment, based on a three-month average, increases by at least half a percentage point over the past 12 months, the country is likely to be in recession..
News in development.-
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
