Global stocks tumble on fears of U.S. recession, tech pullback

The S&P 500 fell 3 per cent while the technology-heavy Nasdaq Composite dropped 3.4 per cent – the biggest one-day declines since September, 2022. Japan’s main stock index fell 12.4 per cent, the largest decline since Black Monday in 1987. Canadian markets were closed for the August long weekend.

“The key risk to our view is that the disorderly market reaction itself, if sustained, will feed through to a higher chance of recession,” Stephen Brown, deputy chief North America economist at Capital Economics, wrote in a note to clients, which put the odds of a “hard landing” for the U.S. economy at 27 per cent.

Still, the rise in unemployment breached something called the Sahm Rule, named after former Fed economist Claudia Sahm, which is seen by many as a reliable predictor of recessions. And it caused investors to second-guess their expectations of a soft landing, where inflation falls and interest rates decline in an orderly manner, without the economy cratering.

Central banks around the world are walking a tightrope. Inflation has come down considerably, and most economies have avoided the recessions that economists were predicting a year ago. The concern now is that many central bankers have been too slow to begin bringing interest rates back to a more normal level, making a downturn much more likely.

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Stock market today: Stock futures steady as S&P 500, Nasdaq try to build on recordsA consequential week that could provide key signals for the near-term path of interest rates.
Fonte: YahooFinanceCA - 🏆 47. / 63 Consulte Mais informação »

Stock market news today: S&P 500, Nasdaq climb as Fed delivers and Meta jumpsStrong Meta results are keeping bullish tech hopes aloft after the Fed cemented bets on a September rate cut.
Fonte: YahooFinanceCA - 🏆 47. / 63 Consulte Mais informação »

Stock market news today: S&P 500, Nasdaq futures climb as Fed delivers and Meta jumpsStrong Meta results are keeping bullish tech hopes aloft after the Fed cemented bets on a September rate cut.
Fonte: YahooFinanceCA - 🏆 47. / 63 Consulte Mais informação »

Stock market news today: S&P 500, Nasdaq inch higher to kick off huge week for marketsInvestors are bracing for a big week filled with a Fed rate decision, the jobs report and Big Tech earnings.
Fonte: YahooFinanceCA - 🏆 47. / 63 Consulte Mais informação »

Stock market news today: S&P 500, Nasdaq gain to kick off huge week for marketsInvestors are bracing for a big week filled with a Fed rate decision, the jobs report and Big Tech earnings.
Fonte: YahooFinanceCA - 🏆 47. / 63 Consulte Mais informação »