Economic data points towards an U.S recession, stock markets could tank going forward
US recession is very slowly becoming a distant possibility, looking at the latest economic data, that is slowly pointing towards a downward trend in US stocks. US recession fears have begun mounting steadily over the course of time, since early August, and the July jobs data somehow became a triggering factor after the employment rate began growing steadily.
Even though the US stock markets was able to recover from previous dips related to the employment data, but there are major issues still persisting in the markets, which are working against the economy, and have chances to bring in recession into the United States.
What is the economic data pointing to?
Economic data is indicating towards a major stock market dip, with premium assets like S&P 500, which has a history of dipping in the month of September, also showing a downward trend, like every other year. Moreover IT-based stocks, are also not doing well over the course of time, considering the market trend in the past few weeks.
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Recession risks have been steadily increasing, based on economic data, and US traders are counting too much on the interest rate cuts, and focusing on the fact that the US economy has a lot more to offer other than just these factors.
Friday’s US employment report playing its part
US employment data, that released this Friday, is again working up to influence the US stock markets, which was earlier on a recovery phase
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