Economist Peter Morici criticized the Biden administration’s economic policies, discussing tax cuts on Social Security benefits that former President Trump promoted during his election campaign.
U.S. stocks are on their worst run since 2022 as a series of weak economic reports has fueled investor concern that a recession is on the way.
All three major stock indexes fell more than 2%, with the Dow Jones Industrial Average dropping nearly 1,000 points before paring its losses, and all 11 major sectors of the S&P 500 index also fell.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Me: DJI | Dow Jones Average | 39571.8 | -776.17 |
-1.92% |
| SP500 | S&P 500 | 5329.39 | -117.29 |
-2.15% |
| I:Comp | Nasdaq Composite Index | 16744.577855 | -449.57 |
-2.61% |
The tech-heavy Nasdaq Composite Index has fallen 10% from its peak and is nearing a correction.
A weak jobs report that showed just 114,000 jobs were created last month and the unemployment rate rose to 4.3% added fuel to the fire for stocks on Friday. This came after weekly jobless claims surged more than expected on Thursday to an 11-month high and followed Intel’s announcement of plans to cut 15% of its workforce and suspend dividend payments.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| XLY | Consumer Discretionary Select Sector SPDR ETF | 175.53 | -7.40 |
-4.05% |
| Amazon | Amazon.com Inc. | 166.03 | -18.04 |
-9.80% |
| WMT | Walmart Inc. | 68.13 | -1.65 |
-2.37% |
| target | Target Corporation | 141.17 | -5.84 |
-3.97% |
Consumer discretionary stocks fell more than 4%, including shares in Walmart, Target and Amazon, which told investors in its latest earnings report that shoppers are becoming more cautious.
Additionally, the ISM manufacturing index fell below 50, a sign of contraction, as the sector recorded another month of job losses in July.
Manufacturers talk about the 2024 election and what it will take
Federal Reserve Chairman Jerome Powell signaled at a meeting this week that a rate cut is likely in September, reporting that roughly 80% of market participants expect a larger easing, with rates falling to the range of 475-500 from the range of 550-525. CME’s FedWatch ToolTrack future interest rate trends.
Federal Reserve Chairman Jerome Powell speaks during a press conference following a meeting of the Federal Open Market Committee at the William McChesney Martin Jr. Federal Reserve Building on July 31, 2024 in Washington, DC. (Photo by Andrew Harnick/Getty Images/Getty Images)
The U.S. housing market is “in a tailspin” and could remain so until 2026
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| gold | SPDR Gold Shares Trust – EUR ACC | 224.63 | -1.18 |
-0.52% |
Gold, a traditional safe haven, is also under pressure, but remains near its all-time high of $2,470 an ounce.
In cryptocurrencies, Bitcoin fell to the $63,000 level, down more than 13% from its all-time high of $73,462.59 recorded in March.
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