Primary Country (Mandatory)

United States

Other Country (Optional)

Set News Language for United States

Primary Language (Mandatory)
English
Other Language[s] (Optional)
No other language available

Set News Language for World

Primary Language (Mandatory)
English
Other Language(s) (Optional)

Set News Source for United States

Primary Source (Mandatory)
CNN
Other Source[s] (Optional)

Set News Source for World

Primary Source (Mandatory)
AajTak
Other Source(s) (Optional)
  • Countries
    • India
    • United States
    • Qatar
    • Germany
    • China
    • Canada
    • World
  • Categories
    • National
    • International
    • Business
    • Entertainment
    • Sports
    • Special
    • All Categories
  • Available Languages for United States
    • English
  • All Languages
    • English
    • Hindi
    • Arabic
    • German
    • Chinese
    • French
  • Sources
    • India
      • AajTak
      • NDTV India
      • The Hindu
      • India Today
      • Zee News
      • NDTV
      • BBC
      • The Wire
      • News18
      • News 24
      • The Quint
      • ABP News
      • Zee News
      • News 24
    • United States
      • CNN
      • Fox News
      • Al Jazeera
      • CBSN
      • NY Post
      • Voice of America
      • The New York Times
      • HuffPost
      • ABC News
      • Newsy
    • Qatar
      • Al Jazeera
      • Al Arab
      • The Peninsula
      • Gulf Times
      • Al Sharq
      • Qatar Tribune
      • Al Raya
      • Lusail
    • Germany
      • DW
      • ZDF
      • ProSieben
      • RTL
      • n-tv
      • Die Welt
      • Süddeutsche Zeitung
      • Frankfurter Rundschau
    • China
      • China Daily
      • BBC
      • The New York Times
      • Voice of America
      • Beijing Daily
      • The Epoch Times
      • Ta Kung Pao
      • Xinmin Evening News
    • Canada
      • CBC
      • Radio-Canada
      • CTV
      • TVA Nouvelles
      • Le Journal de Montréal
      • Global News
      • BNN Bloomberg
      • Métro
Reebok Princess Sneakers Buy Now
Crystal Accented Bracelet Watch Buy Now
Womens Ribcage Straight Ankle Jeans Buy Now
Women's Roman Numeral Watch Buy Now
Flowy Maxi Skirt with Pockets Buy Now
Digital Resin Strap Watch Buy Now
Ayieyill Corduroy Tote Bag for Women Buy Now
JMIERR Men's Casual Shorts Buy Now
Womens Fuax Leather Skirt Buy Now
Kitchen Vegetable Chopper Slicer Buy Now
Instant Hijab Scarf For Women Buy Now
180° Flip Screen Compact Camera with Flash Buy Now
Phoenix Bracelet Buy Now
EcoSmart Fleece Hoodie Buy Now
Lenovo Tab M9-2023 - Tablet - Long Battery Life Buy Now
Gold Pearl Bridal Jewelry Set Buy Now
Ascender Softshell Front-zip Jacket Buy Now
Nike Men's Club Hoodieor Nike Club Hoodieor Nike Full-Zip Hoodie Buy Now
Men's Bomber Jacket Buy Now
Calvin Klein Hadley Crossbody Buy Now
Reebok Princess Sneakers Buy Now
Crystal Accented Bracelet Watch Buy Now
Womens Ribcage Straight Ankle Jeans Buy Now
Women's Roman Numeral Watch Buy Now
Flowy Maxi Skirt with Pockets Buy Now
Digital Resin Strap Watch Buy Now
Ayieyill Corduroy Tote Bag for Women Buy Now
JMIERR Men's Casual Shorts Buy Now
Womens Fuax Leather Skirt Buy Now
Kitchen Vegetable Chopper Slicer Buy Now
MoreBack to News Headlines
Global stock markets end week in a slump over fears of U.S. recession

Global stock markets end week in a slump over fears of U.S. recession

CBC
Saturday, August 3, 2024 1:10 PM GMT

Stocks tumbled Friday on worries the U.S. economy could be cracking under the weight of high interest rates meant to whip inflation.

The S&P 500 fell 1.8 per cent on Friday for its first back-to-back loss of at least one per cent since April. The Dow Jones industrial average lost 1.5 per cent, and the Nasdaq composite fell 2.4 per cent.

Canada's main stock index, the S&P/TSX composite, fell 2.1 per cent on Friday as major energy, technology and industrial stocks all tumbled, marking its steepest drop since mid-February.

A report showing hiring by U.S. employers slowed last month by much more than economists expected sent fear through markets, with both stocks and bond yields dropping sharply.

It followed a batch of weaker-than-expected reports on the economy from a day earlier, including worsening U.S. manufacturing activity, which has been one of the areas hurt most by high interest rates.

It was just a couple of days ago that U.S. stock indexes jumped to their best day in months after Federal Reserve chair Jerome Powell gave the clearest indication yet that inflation has slowed enough for rate cuts to begin in September.

Now, worries are rising that the Fed may have kept its main interest rate at a two-decade high for too long. A rate cut would make it easier for U.S. households and companies to borrow money and boost the economy, but it could take months to a year for the full effects to filter through.

"The Fed is seizing defeat from the jaws of victory," said Brian Jacobsen, chief economist at Annex Wealth Management. "Economic momentum has slowed so much that a rate cut in September will be too little and too late."

Jacobsen said the U.S. central bank will have to "do something bigger" than the traditional cut of a quarter of a percentage point in order to avert a recession.

Traders are now betting on a nearly three-in-four chance that the Fed will cut its main interest rate by half a percentage point in September, according to data from CME Group. That's even though Powell said Wednesday that such a deep reduction is "not something we're thinking about right now."

Of course, the U.S. economy is still growing, and a recession is far from a certainty. The Fed has been clear about the tightrope it's walking since it started hiking rates sharply in March 2022: Being too aggressive would choke the economy, but going too soft would give inflation more oxygen and hurt everyone.

While refusing to claim victory on either the jobs or the inflation front on Wednesday, before the discouraging economic reports hit, Powell said Fed officials "have a lot of room to respond if we were to see weakness" in the job market after hiking its main rate so high.

"Yes, the economy is weakening, but I am not convinced there is enough evidence that the data so far is a death knell for the economy," said Nathan Thooft, senior portfolio manager at Manulife Investment Management.

U.S. stocks had already appeared to be headed for losses on Friday before the disappointing jobs report thudded onto Wall Street.

Read full story on CBC
Share this story on:-
Run 3 Space | Play Space Running GamePlay Run 3, the ultimate space tunnel running game with 300+ challenging levels!Adv.
Traffic Jam 3D | Online Racing GameTraffic Jam 3D is a game where you’ll be driving through heavy traffic.Adv.
Duck Hunt | Play Old Classic GamePlay the classic 1984 light gun shooter game Duck Hunt on your browser.Adv.
More Related News
Parking Slot | Free Parking GamePlay Parking Slot, the best online 3D car driving and parking game.Adv.
Slope Ball Run - Play OnlineSlope Game takes you on an exciting journey of a ball on special paths.Adv.
'It's like Groundhog Day': Canadian dairy producers are used to Trump calling them out, but worry remains

Dairy producers say they're used to U.S. President Donald Trump's jabs at their industry, as he threatens yet another round of tariffs on Canada. But they're still worried about what the continued threats could mean for the supply management system that protects them.

Canada's merchandise trade deficit narrowed to $5.9B in May

Canada's merchandise trade deficit narrowed to $5.9 billion in May, according to data from Statistics Canada, after hitting a record high in April.

Non-profit run by 23andMe co-founder gets court approval to buy the genetic testing company

Anne Wojcicki's bid to buy 23andMe, the genetic testing company she co-founded nearly 20 years ago, has received the court green light.

Lululemon sues Costco over sale of alleged knock-offs

Lululemon is accusing Costco of infringing on its intellectual property by selling knock-offs of some of its most popular products.

© 2008 - 2025 Webjosh  |  News Archive  |  Privacy Policy  |  Contact Us