Recession Fears Stocks Fall
Dow Jones Chart
Sell Off
What a wild day we had. The day before we Federal Reserve Chair Jerome Powell speak on the decision to hold interest rates steady. Then today the Dow dropped more than 500 points after the 10 year interest note yield moved below the 4% mark. A mark that hasn’t been seen since February. This reignited recession fears sending the market into a tumble. It’s earning season and even companies that reported good earnings recently or today were still dragged down by the market ($AMD).
10 yr Treasury Note Yield
What Does this Mean?
This data could have been read in a good way, assuming the lowered yield was caused by an ease on inflation. However the market reacted in a negative way after Fed Chair Powell’s remarks (see bottom of page) on it’s decision to hold rates steady, bad manufacturing data, and fears that the job report on Friday will show a higher unemployment rate. These things rolled into one can signal an incoming recession.
Article on Manfuacturing Data Yahoo
FRIDAY UPDATE
Jobs report showed that less jobs created than expected and Unemployment Rose from 4.1 to 4.3% signaling a continued sell off of the markets. Some stocks like $DKNG saw +10% losses before having a slight recovery at the end of the day. Others did better in the wake of this news, like $AAPL which saw its shares rise 1.5% on the day after a dip buy follow the jobs report. The largest gainers were some small cap stocks while Intel took the brunt of the crash dropping 26%! This after news of layoffs for 15% of their employees and a suspension of its popular 5% dividend. This dividend was literally the only thing keeping their price steady and incentivizing a long term hold after the company completely botched its management since the rise of AI. Lagging behind nearly every major company in that sector they had recently announced a massive investment in AI to make them competitive around year 2025 only to cut jobs and take away dividends now. What are they Thinking?
Jerome Powell Speaks…
on the decision to hold rates steady while indicating that inflation is getting closer to the rate cut Target…
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