The Flip Side Does market volatility risk a US hard landing?
Aug 14, 2024
Recent financial market volatility raises questions about a potential US recession. Analysts discuss the impact of rising unemployment and inflation on expectations. The shifting focus from high-valued AI stocks to smaller companies reflects changing market dynamics. Additionally, the unwinding of Japan’s carry trade contributes to global investment fluctuations. The conversation also highlights how these market changes affect consumer spending and the broader economic landscape.
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Market Volatility and Recession Fears
- Recent market volatility has investors worried about a US recession.
- High asset prices amplify the impact of a slowdown.
July Jobs Report as Catalyst
- The July jobs report sparked recent market volatility.
- Soft data, like business sentiment, had already been declining.
Rising Unemployment and Recession Indicator
- The rise in US unemployment from 3.4% to 4.3% raises concerns.
- This triggers the "Sahm Rule," a recession indicator.