#SP500 #MarketVolatility #RateCuts
Market Turmoil: S&P 500 Plunges 4.3% in Worst Week Since March 2023
The stock market is experiencing significant turmoil, with the S&P 500 registering a 4.3% decline, marking its worst week since March 2023. The Nasdaq Composite has also shed 5.8%, its worst week since 2022. This downturn is largely attributed to investor apprehension regarding the U.S. economic landscape, particularly after August's private payrolls increased by only 99,000, significantly lower than the expected 140,000.
Economic Indicators and Rate Cuts
The recent labor statistics have raised concerns about the weakening labor market. Despite this, there is optimism that the Federal Reserve may initiate a reduction in interest rates by at least a percentage point by the end of the September policy meeting. Economists predict a growth of 161,000 in nonfarm payrolls and a slight drop in the unemployment rate to 4.2%.
Market Sentiment and Historical Trends
September is historically a challenging month for stocks, and this year is no exception. The S&P 500 has already fallen 2.3% after the initial two trading days of the month. Goldman Sachs tactical expert Scott Rubner notes that the latter half of September has historically been the most challenging two-week span for the S&P 500 since 1950, with a median decline of nearly 0.5% during this timeframe.
Key Stocks and Market Performance
In after-hours trading, Broadcom witnessed a nearly 7% decline after projecting its fiscal fourth-quarter revenue to fall short of analysts' expectations. The Dow Jones Industrial Average futures experienced a slight uptick of 49 points, translating to an increase of 0.1%, while Nasdaq 100 futures decreased by 0.2%.
Federal Reserve's Stance on Interest Rates
Atlanta Federal Reserve President Raphael Bostic, known for his hawkish stance, has expressed his willingness to consider rate cuts, even though inflation remains slightly above the 2% target. This shift in focus toward the employment sector is seen as a significant indicator of the Fed's stance on interest rates.
Conclusion
The current market trends are marked by significant volatility and uncertainty. As investors await the pivotal jobs report for insights into the U.S. economic landscape, the Federal Reserve's stance on interest rates remains a crucial factor in shaping market sentiment.
Original Article: https://www.cnbc.com/2024/09/05/stock-market-today-live-updates.html
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