Current:Home > MyThe Daily Money: A "rout" for stocks -GrowthSphere Strategies
The Daily Money: A "rout" for stocks
View
Date:2025-04-17 08:35:58
Good morning! It’s Daniel de Visé with your Daily Money.
Well, if you're one of those people who checks your IRA balance at every meal, you may want to take a day off.
Friday was bad on the American stock market. Today could be worse. Last week's "sell-off" escalated into "a rout" in global markets Monday, the New York Times reported, using Wall Street parlance for bad and worse. In Japan, the Nikkei index fell more than 12%, its worst one-day decline ever, worse than anything in the Great Recession of 2008.
From Asia, the "unease" -- dare we say "panic"? -- spread to Europe, where markets were down about 2% in early trading.
How bad will things get here in the U.S.? Here is our coverage.
Are we headed for a recession?
The number of jobs added last month fell short of expectations, and unemployment rose, triggering a measure that has typically meant the U.S. is in a recession, Charisse Jones reports.
Yet, the economy has been unusually defiant, with the nation’s gross domestic product continuing to grow, and employment trends reflecting the unusual forces that came into play during the COVID-19 pandemic, which dramatically disrupted the labor market.
That combination of factors has led most economists to determine that the "Sahm rule" probably doesn't apply right now. But, for roughly five decades, it has predicted every downturn. (If you're trying to place the name, we can assure you the rule has nothing to do with Texas multi-instrumentalist Doug Sahm.)
What is the Sahm rule?
Here's what happened with stocks on Friday
Given today's events, you may want a recap of what happened to the U.S. stock market on Friday.
Surprisingly weak employment data stoked fears of recession, prompting investors to dump stocks, Reuters reported.
Job growth slowed more than expected in July, new data showed, and unemployment increased to 4.3%, pointing to possible weakness in the labor market and greater vulnerability to recession.
Markets were already rattled by downbeat earnings updates from Amazon and Intel and other recent economic returns. And all of this happened in the same week the Federal Reserve waved off an interest-rate cut, on the theory that the American economy is a-okay.
Read the story.
📰 More stories you shouldn't miss 📰
- What to do if your college closes
- Too old to open a Roth IRA?
- Now is a good time for a CD
- Kamala Harris on Social Security
- Who are the top tax advisers?
About The Daily Money
Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.
Daniel de Visé covers personal finance for USA Today.
veryGood! (6359)
Related
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- NBC News drops former RNC Chair Ronna McDaniel as contributor after backlash
- NBC News drops former RNC Chair Ronna McDaniel as contributor after backlash
- Kansas considers limits on economic activity with China and other ‘countries of concern’
- IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
- NYC congestion pricing plan passes final vote, will bring $15 tolls for some drivers
- Conjoined Twin Abby Hensel of Abby & Brittany Privately Married Josh Bowling
- Ex-Diddy associate alleges arrested Brendan Paul was mogul's drug 'mule,' Yung Miami was sex worker
- 'Most Whopper
- Catch up on our Maryland bridge collapse coverage
Ranking
- Bodycam footage shows high
- TikTok is under investigation by the FTC over data practices and could face a lawsuit
- Ahmaud Arbery's killers ask appeals court to overturn their hate crime convictions
- Settlement reached in lawsuit between Disney and Florida Gov. Ron DeSantis’ allies
- Sarah J. Maas books explained: How to read 'ACOTAR,' 'Throne of Glass' in order.
- Zayn Malik Details Decision to Raise His and Gigi Hadid's Daughter Out of the Spotlight
- Athletics unfazed by prospect of lame duck season at Oakland Coliseum in 2024
- Illinois Supreme Court to hear actor Jussie Smollett appeal of conviction for staging racist attack
Recommendation
NHL in ASL returns, delivering American Sign Language analysis for Deaf community at Winter Classic
Nobelist Daniel Kahneman, a pioneer of behavioral economics, is dead at 90
NCAA President Charlie Baker urges state lawmakers to ban prop betting on college athletes
Georgia Power makes deal for more electrical generation, pledging downward rate pressure
Megan Fox's ex Brian Austin Green tells Machine Gun Kelly to 'grow up'
MLB Opening Day games postponed: Phillies vs. Braves, Mets-Brewers called off due to weather
Central American and Mexican families mourn the Baltimore bridge collapse missing workers
This stinks. A noxious weed forces Arizona national monument’s picnic area to close until May