With shares seeming “vulnerable to further falls,” strategists warned on Friday that investors should approach a sell-off in the global stock market cautiously and that it might be too soon to purchase the dip.
As concerns over a deteriorating economic outlook sparked by new data, U.S. markets began August significantly lower.
The increase in first claims for unemployment benefits was the highest since August 2023. Unexpectedly low and indicative of an economic downturn, the ISM manufacturing index, which measures industrial activity in the United States, came in at 46.8%.
A fear among investors was that the Federal Reserve would be lagging behind in reducing interest rates in an attempt to prevent a recession as a result of the poor statistics.
In line with Wall Street’s decline, European markets dropped 1.6% on Friday morning.
Source (CNBC)
