• 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

Kenvue stock drops 10% on report RFK Jr....

September 8, 2025

Mortgage rates see biggest one-day drop in over...

September 5, 2025

Paramount mandates 5-day-a-week return to office ahead of...

September 5, 2025

Apple has survived Trump’s tariffs so far. It...

September 4, 2025

Trump family’s American Bitcoin makes stock market debut

September 4, 2025

Disney to pay $10 million to settle FTC...

September 4, 2025

Crash victims’ families prepare to make what could...

September 3, 2025

Amazon cracks down on Prime free shipping sharing

September 3, 2025

U.S. judge orders Google to share search data...

September 3, 2025

Kraft Heinz to split into two companies

September 2, 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

  • Short PHM: Stock Hits Historic High at $130, Rejection Day Sets Midpoint as Short-Term Target

    July 19, 2024
  • Shopify stock soars 22% on earnings beat despite consumer spending slowdown: Time to buy?

    August 7, 2024
  • American Marc Fogel released from Russian custody

    February 11, 2025
  • Russell Vought confirmed to head government’s leading budget office after Dems hold 30-hour protest

    February 7, 2025
  • Russian drone crashes in Polish field as Warsaw protests airspace violation and plans formal complaint

    August 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

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

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

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

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,975)
  • Investing (634)
  • Stock (923)

Latest Posts

  • ‘No betrayal’ in Trump move toward Ukraine war negotiations, Hegseth says

    February 13, 2025
  • Tesla Stock Earnings: 3% Drop Amid Delivery Issues

    October 4, 2024
  • Trump praised for getting NATO allies to bolster defense spending: ‘really staggering’

    March 13, 2025

Recent Posts

  • Dick’s Sporting Goods is latest retailer to forecast rocky 2025 as recession fears swirl

    March 11, 2025
  • Here’s what happened during President Donald Trump’s eighth week in office

    March 15, 2025
  • Biden concludes foreign diplomacy in region where US influence overshadowed by China

    November 15, 2024

Editor’s Pick

  • Nifty under heavy pressure: German 40 steady on Tuesday

    August 13, 2024
  • Apple just landed a key win for the global encryption fight

    August 20, 2025
  • Special Counsel Jack Smith required to submit Trump findings to DOJ before leaving. What happens next?

    December 7, 2024
  • 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