News

Published: Apr 5, 2023
Updated: Apr 5, 2023

US Economic Woes Spark Market Turmoil as Stocks Fall and Job Cuts Continue

The US markets experienced a sharp decline as economic worries hit the global economy, causing the Dow to plummet nearly 200 points. This article provides a comprehensive insight into the market situation, including the factors that triggered the fall and its impact on the US economy.

US Market Volatility:

The S&P 500 broke a four-day winning streak, where it rallied 3.9% at 4100. Negative surprises, including Mfg PMI, JOLTs, and IIP, have been the primary reasons for the market turbulence. Moreover, the bond market volatility has become the new reality for traders, leading to US bond yields easing and the US Dollar Index hitting a fresh two-month low. JPMorgan has warned that stocks are in calm before the storm, and US JOLT data has fallen below ten million for the first time in nearly two years.

Job Cuts and Bankruptcy:

The impact of the market fall has also been felt in the job market. Apple and Walmart announced further job cuts, with Walmart slashing over 2,000 jobs at its e-commerce centers, and GM buyouts expected to cut 5,000 salaried jobs. Additionally, Virgin Orbit has filed for Chapter 11 bankruptcy.

Metal Market Woes:

The PMI and JOLT data have resulted in base metals falling, with Steel, Copper, and Aluminum ETFs seeing significant selling. The recession trade is gaining momentum as economic data continues to deteriorate. However, gold rallied from session lows of -1% to +0.75% and crossed $2000, resulting in a positive market trend for the precious metal.

Trump's Legal Troubles:

The article also highlights that former US President Donald Trump pleaded not guilty to 34 counts of falsifying business records, surrendering at a New York courthouse. Shortly after exiting the courthouse, Trump flew home to his Mar-a-Lago club in Florida.

Impact on Indian Markets:

The market volatility in the US is expected to impact Indian markets, with volatility expected. As such, investors should prepare themselves for the possible effects on the Indian economy.

The US market's fall is a cause for concern for the global economy, with job cuts and bankruptcy adding to the situation's uncertainty. However, the market turbulence is also creating opportunities for those who invest in the right assets, such as gold. As we wait for the situation to stabilize, it is essential to remain informed and prepared for any eventuality.