US Markets Fall Amid Fears of Economic Crisis

 

US markets fall amid fears of economic crisis

 

Global markets are falling as investors fear the possibility of an economic slowdown following a weak US jobs report. The broad market fell sharply and the Nasdaq entered correction territory. Recession fears were heightened by a combination of weak economic data and the Federal Reserve’s stance on monetary policy.

 

Key market factors:

 

Weak US jobs report:

Lower-than-expected job growth and a higher unemployment rate added to recession fears.

Federal Reserve policy:

Uncertainty about the Fed’s ability to deliver a soft landing and possible policy missteps.

Market Correction:

The Nasdaq’s drop of more than 10% from its peak suggests a market correction.

Banking sector problems:

Falling stocks of major US banks such as Bank of America and Wells Fargo have added to market volatility.

Global impact:

Asian markets: Sharp falls, especially in Japan, as investors reacted to the sell-off in the US and domestic economic concerns.

European markets:

Significant losses, with banks and US equities taking the brunt of the fall.

 

Top 10% Owner Trading Recent Week

The fall of the first echelon shares does cause anxiety of investors. The table with the reports on deals made by the owners of 10% of the companies’ shares confirms the negative mood.

 

BAC and BERKSHIRE HATHAWAY INC – started selling already at the beginning of the month.

 

The heat map of the stock market informs that such dynamics covered almost all sectors of economy.

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The following charts show volume support and resistance levels for the Euro, Oil and the S&P 500.

 

 

Summary:

Although there has been a sharp correction in the market, it is too early to say that the bull market is over. However, investor sentiment is cautious and further volatility is expected. Upcoming economic data and corporate earnings will provide further insight into the economic outlook.

Apart from all the fundamental factors, the upcoming US presidential election should be taken into consideration.

When investors are not sure that monetary policy will be the same under the new president, profit taking is quite expected.