3 things investors need to know this week!
Welcome to our newsletter. Each week, we’ll share the top 3 things any investor needs?to know to help them stay on top of things!
Jobs report triggers key recession warning signal as stocks plunge: Wall Street is clearly moving into "careful what you wish for" territory this week as investors switch gears from pushing the Federal Reserve to lower its key lending rate to worry about the true reason behind the now-certain September cut.
U.S. stocks have shed more than $1.2 trillion in value over the past two trading days, turning an early-week gain that followed the Fed's July rate decision on Wednesday into one of the biggest declines of the year as investors shift focus from inflation concerns to the broader health of the world's biggest economy.
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Fed Officials Seen as Likely to Push Back Against Half-Point Cut: A weak July jobs report has fueled fears that the Federal Reserve has already waited too long to lower interest rates. However, policymakers are unlikely to respond with a jumbo-sized cut in September that might signal alarm.
US hiring slowed markedly in July and the unemployment rate rose to the highest level in nearly three years. Some major Wall Street Banks, including JPMorgan Chase & Co. and Citigroup Inc., changed their calls after the report to predict a half-point move when policymakers next meet in September.
China May Be on a Well-Trod Path to Economic Trouble: The International Monetary Fund is famous for espousing fiscal discipline. When a nation is in an economic downturn, the typical prescription is to tighten its budgetary belt to restore confidence, get interest rates down, and resuscitate growth.
So, given this established pattern, it catches the eye when the IMF urges a big fiscal outlay. That happened this week, when the fund’s staff—in an annual review of China’s economy—called for a much larger-scale fix to that nation’s property slump. They recommended a package that amounts to the equivalent of 5.5% of GDP over four years, almost $1 trillion.
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3 个月Loved your last newsletter. Can't wait to see what this week brought!