The Stock Market Is Falling Because Bad News Is Bad Again

The Stock Market Is Falling Because Bad News Is Bad Again

The Dow Jones Industrial Average was down astir 340 points, oregon 0.8%. The S&P 500 was down 0.4%. The Nasdaq Composite was down 0.5%. The Russell 2000, which rallied successful July connected hopes of complaint cuts paired with economical resilience, was down 1.7%.

Bond prices were rallying, meaning yields were falling. The output connected the 10-year Treasury enactment was down to 3.974%, falling beneath 4% for the archetypal clip since Feb. 2.

The ISM manufacturing scale fell to a speechmaking of 46.8 successful July from 48.5 successful June. The quality followed an uptick successful play jobless claims.

“Because the Fed failed to determination yesterday, the ongoing deterioration successful the economical information arsenic evidenced by today’s rising archetypal jobless claims, Low portion labour costs, and abrupt slowing successful planetary manufacturing enactment suggest that we are getting to a constituent wherever atrocious economical quality is atrocious for markets,” writes Neil Dutta, caput of economical probe astatine Renaissance Macro. “Until the Fed begins cutting, they are going to look down the curve.”

Stocks were rallying earlier this week arsenic traders stake that the Federal Reserve tin commencement cutting involvement rates successful September without risking a recession. Reality whitethorn not beryllium truthful rosy.