An August stocks slump is ‘absolutely normal' — but strategists urge caution on buying the dip

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Strategists on Friday urged investors to take a cautious approach to a global stock market sell-off.

U.S. stocks kicked off August sharply lower as fresh data prompted fears of a worsening economic outlook.

Initial jobless claims rose the most since August 2023. The ISM manufacturing index, a barometer of factory activity in the U.S., came in at 46.8%, worse than expected and a signal of economic contraction.The weak data led investors to worry the Federal Reserve may be behind the curve in cutting interest rates to fend off a recession.Cedric Chehab, global head of country risk at research firm BMI, said a combination of factors were at play amid souring market sentiment.

Chehab said one factor that some investors appeared to be forgetting was that there is typically a seasonal rise in equity market volatility between the period of July and October. Shane Oliver, head of investment strategy and chief economist at investment management firm AMP, said a correction appears to be getting underway.

 

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An August stocks slump is ‘absolutely normal’ — but strategists urge caution on buying the dipStrategists on Friday urged investors to take a cautious approach to a global stock market sell-off.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »