Oddbean

Fears of US recession and financial turbulence grow ========== The sell-off on Wall Street after a lower-than-expected jobs report indicated a possible recession; The Federal Reserve criticized for leaving expected interest rate cuts too little and too late; Market sentiment turned negative after jobs report showed only 114,000 jobs added in July compared to expectations of 175,000; Tech-based NASDAQ index down 10% from its high on July 11; Chipmaker Intel's share price plunged 26% after announcing plans to cut 15,000 jobs; $3 trillion wiped off market value of major tech companies last month; Unemployment rate rose by 0.2% to 4.3%, triggering recession indicator; Yield on 10-year Treasury bonds fell to 3.8%; Vix volatility index rose to highest level since March 2023 banking crisis; Clamor for major interest rate cuts and denunciations of the Fed for "falling behind the curve"; Futures markets now pricing in a 70% chance of a 0.5% point cut in September; Analysts at JP Morgan and Citi raised expectations for rate cuts this year to total 1.25 percentage points; Working class urged to establish independent committees to fight for their own interests against corporations and the Biden-Harris administration. #UsRecession #FinancialTurbulence #FederalReserve #InterestRates #JobsReport #Nasdaq #Intel #UnemploymentRate #TreasuryBonds #VixVolatilityIndex https://www.wsws.org/en/articles/2024/08/05/ffyn-a05.html