• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

American recession fears spark selloff in international markets and point to lower U.S. open

by August 5, 2024
written by August 5, 2024

U.S. stocks saw their third-straight trading day of heavy declines as recession fears continued to mount and Wall Street abandoned a popular trade that had helped counter high interest rates.

The Dow Jones Industrial Average was down roughly 900 points or nearly 2.5% Monday morning, while the S&P 500 declined 2.3% and the tech-focused Nasdaq fell 2.5%.

On Friday, the Bureau of Labor Statistics reported worse-than-expected jobs data, showing the U.S. unemployment rate had climbed to 4.3% and that the economy had added just 114,000 jobs.

That sparked fears that the Federal Reserve should already have cut interest rates by this point and would instead tip the economy into a recession.

The central bank has spent the past several years keeping those rates at levels last seen prior to the Great Recession in the hopes of tamping down inflation.

But some economic and financial data show the U.S. economy rapidly weakening as a consequence.

In addition to the jobs report, traders have been reacting to a weaker outlook from e-commerce giant Amazon, as well as a growing belief that much of the recent run-up in tech stocks, which pushed the Nasdaq to a record high just a month ago, has been overdone.

Among the companies seeing major declines in their share prices early Monday:

While macroeconomic forces weighed on markets, other commentators pointed out that much of the sell-off was also due to traders abandoning a popular strategy for countering the Fed’s higher interest rates.

As the U.S. central bank made borrowing more expensive stateside, the Bank of Japan had, until recently, kept its interest rates lower to increase investment in the yen. It did the trick: Wall Street began borrowing against the yen at the lower interest rates in order to invest more cheaply in desired assets.

Now, the trade has flipped: the BOJ has signaled it intends to increase interest rates, while Fed Chair Jerome Powell said a September rate is almost certainly in the offing.

The result is that the U.S. dollar has erased most of its gains on the year.

The Tokyo Stock Exchange on Monday. Noriko Hayashi / Bloomberg via Getty Images

Meanwhile, investors are increasingly putting their money into U.S. Treasury bonds — deemed ‘haven’ assets that act as stores of wealth in volatile moments. 

The yield on the 10-year note hit as low as 3.68%, its lowest level since June 2023. While that’s a signal that recession fears are increasing, it could also bring relief to the housing market, since mortgage rates track the 10-year yield.

Cryptocurrencies including bitcoin and ethereum also saw sizable price declines. Bitcoin fell nearly 14% to about $50,000, its lowest level since this spring, while ethereum dropped 17% to about $2,200, effectively erasing its gains for the year.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Mike Johnson mounts 20-state blitz to keep House red as GOP braces for Harris VP reveal
next post
UN forced to fire 9 employees over likely involvement in Hamas massacre: ‘Tip of the iceberg’

related articles

YouTube to pay $24 million to settle Trump...

October 1, 2025

Charlie Javice sentenced to 7 years in prison...

October 1, 2025

Video game maker Electronic Arts to be acquired...

October 1, 2025

Nearly 200,000 BMWs recalled over potential fire risk

September 30, 2025

Trump says U.S. will impose new tariffs on...

September 29, 2025

Former Fed chairs warn that removing Lisa Cook...

September 27, 2025

Amazon to pay $2.5 billion to settle FTC...

September 27, 2025

The charm of watching movies in theaters is...

September 25, 2025

Ben & Jerry’s co-founder resigns, claiming parent company...

September 18, 2025

LimeWire acquires Fyre Festival, asking ‘What Could Possibly...

September 17, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • US stocks open lower: Dow down 240 points, S&P slips 0.4%

    April 11, 2025
  • Sen. Tim Scott outlines first 100 days of Congress, crypto, tariffs

    April 12, 2025
  • LG Electronics India, CATL, and other major Asian IPOs to watch out for in 2025

    January 6, 2025
  • Federal judge rules against Trump order halting sex change procedures in prisons

    June 3, 2025
  • Trump State Department declares Tren de Aragua, MS-13, Mexican drug cartels as foreign terrorist organizations

    February 20, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,278)
  • Investing (634)
  • Stock (935)

Latest Posts

  • From Bunge’s Viterra deal to Shein’s IPO: US-China trade war derails major cross-border deals

    May 3, 2025
  • ‘So many lies’: Schumer ambushes GOP with surprise Epstein files amendment

    September 10, 2025
  • Trump crypto chief says we are in the ‘golden age’ for digital assets, ‘clearing the deck’ of Biden barriers

    April 8, 2025

Recent Posts

  • Long CRM: riding the bullish momentum with strong breakout, AI innovations, and record margins

    December 4, 2024
  • Allan Lichtman predicts Harris as 2024 winner because ‘Democrats got smart’ and did this

    September 7, 2024
  • Senior House Republican eviscerates Dems for ‘fear campaign’ against Trump’s ‘big, beautiful bill’

    May 12, 2025

Editor’s Pick

  • Denmark PM repeats Greenland ‘not for sale,’ but would welcome more American troops on Arctic island

    February 4, 2025
  • Delta says chaos after CrowdStrike outage cost it $550 million

    August 9, 2024
  • Trump pushes back on ‘rebel’ Republicans over tariffs: ‘You don’t negotiate like I negotiate’

    April 9, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock