WHP580 Newsroom

WHP580 Newsroom

Top headlines from Central PA's Newsroom

 

Stocks Futures Down Significantly

Wall Street is bracing for a significant drop as stock futures tumble ahead of the opening bell. Dow Futures have plummeted over 620 points, while the tech-heavy Nasdaq has seen an even steeper decline, falling approximately 840 points in pre-market trading. The S&P 500 is also expected to see a drop of around 140 points.

The sharp decline in stock futures comes amid concerns over a weaker-than-anticipated jobs report for July, which has sparked fears of a potential economic recession. According to the Labor Department, nonfarm payrolls grew by just 114,000 last month, a significant slowdown from the 179,000 jobs added in June and below the 185,000 expected by economists. This has led to an increase in the unemployment rate to 4.3%.

The disappointing jobs report has led to a surge in the CBOE Volatility Index, also known as the VIX or the "fear gauge", which tracks the 30-day expected volatility of the stock market. The VIX has reached its highest level since October 2021, indicating rising nervous sentiment among investors.

The Federal Reserve is now under pressure to take action to calm markets and support the economy. Some analysts believe that the central bank should have already started cutting interest rates, given the current economic indicators.

The market downturn is not limited to the United States. Japan's Nikkei also experienced a significant decline, dropping nearly 5% in its worst day since 2022.


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