Did a Turbulent Week for Stocks Guarantee Interest Rate Cuts?

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World markets began the week with huge losses as major selloffs occurred, but have seemed to normalize over the week.Markets in Europe, Japan, and Wall Street experienced huge drops, with Japan’s Nikkei index dropping 18.2% in two trading sessions and Wall Street’s Dow Jones Industrial Average sliding 1,033 points. Many stocks rebounded throughout the week, but the averages on a week-to-date basis reflect the earlier losses.

In the Bureau of Labor Statistics' most recent employment report, only 114,000 jobs were added, down substantially from the previous month when 206,000 jobs were added. This sudden slowdown in employment has led to mounting concerns about an economic recession. The selloff, largely set off by the report, has some uncomfortable similarities to market crashes like the 1987...After a wild week in the markets that rekindled fears about the strength of the U.S.

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