Market Volatility and Investor Sentiment

Recent market movements have shifted from a rotation in asset classes to a significant sell-off, prompting a flight to safety among investors. Concerns about slowing US growth and disappointing earnings, particularly in the AI sector, have intensified following the July jobs report, which revealed a job creation figure significantly below expectations. This has led to heightened recession fears as the likelihood of a hard landing scenario increases, contrasting with views just a month prior. Technical selling and adjustments to risk positions have compounded these moves, reflecting changing investor sentiment and macroeconomic dynamics.