ALL THE MONEY NEWS YOU NEED TO KNOW | | | | | | Daniel de Visé | Personal Finance Reporter
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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. |
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.) |
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. |
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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. | | | | NASDAQ, Dow Jones and other stock indexes are set to open sharply lower after global markets plunged overnight amid investor fears about U.S. economy. | | | |  | The Sahm rule should apply after Friday's jobs report. But does it? | | | | All three major stock indices closed sharply lower as a weak jobs report triggers recession fears. Economists now see aggressive Fed rate cuts ahead. | | | | College closures are on the rise, with one now closing every week. Know the red flags to avoid one that may shut on you and disrupt your learning. | | | | Credit unions are offering lucrative promotions on CDs to lure customers. You should consider locking in some rates now before the Fed cuts rates. | | | | USA TODAY will publish its 2nd annual list of best tax and accounting advisors in February and invites readers to help determine the top firms. | | | | The likely Democratic Party presidential nominee has previously supported efforts to raise revenue and expand benefits for America's top retirement program. | | | | Retirees and older Americans are less likely than younger workers to have a Roth IRA. They may be missing out in retirement. | | | | Another rise in the unemployment rate in Friday's jobs report traditionally would signal a recession. But this time is likely different, experts say | | | | Our app gives you award-winning coverage, crosswords, audio storytelling, eNewspaper and more. | | | | |  | Sign up for the news you want | Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. | | | | | | |
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