Fed's first rate cut in four years. It was a rocky start to September. Nvidia plunged 9% on the very first trading day of the month. Roping in the last week of August, investors dumped stocks at their fastest pace since November 2020. Selling was led by institutional investors and hedge funds. Although to be fair, ETFs saw unusually high inflows throughout August.
Why the selloff in stocks? The latest economic data – especially regarding the labor market - implied slowing growth for the U.S. economy. Fears reemerged that the Fed was behind the curve and the U.S. was heading for a recession. That’s right – recession. The boogeyman that refuses to die and haunts and taunts investors until sleep is elusive and portfolios can only be opened in the company of a stiff drink.
Why the selloff in stocks? The latest economic data – especially regarding the labor market - implied slowing growth for the U.S. economy. Fears reemerged that the Fed was behind the curve and the U.S. was heading for a recession. That’s right – recession. The boogeyman that refuses to die and haunts and taunts investors until sleep is elusive and portfolios can only be opened in the company of a stiff drink.
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