Worries about US growth: Economic concerns are growing on Wall Street, with worries that months of elevated interest rates may be starting to hurt US growth .
– Shift in thinking: Evidence of a shift in thinking came on Thursday, when data showing weakness in the labor market and manufacturing sector sparked a sharp selloff in US equities .
– Rate cuts: Investors are worried that the central bank may have left rates at restrictive levels for too long, allowing them to take a toll on economic growth ¹.
– Upcoming releases: The concerns put a spotlight on upcoming releases, such as Friday’s employment data and an inflation report later this month, that could exacerbate worries if they show further signs of weakness ¹.
– Earnings reports: Next week brings earnings from industrial bellwether Caterpillar and media and entertainment giant Walt Disney, which will give more insight into the health of the consumer and manufacturing .Futures markets: Bets in the futures markets on Thursday suggested growing unease about the economy, with Fed fund futures reflecting traders pricing in an over 25% chance of a 50-basis point cut at the central bank’s September meeting .
Market unease: Broader markets also showed signs of unease, with the Cboe Volatility index standing near a three-month high as demand for options protection against a stock market selloff rose ¹.
-Wealth inequality: Wealth disparity between the rich and the poor, with the wealthiest individuals holding an increasingly large share of the wealth.
Racial wealth gap: Systemic racism and discrimination in lending and financial services, resulting in a significant wealth gap between white and minority communities.
– Housing affordability: Rising housing costs and unaffordable housing, driven by investors and Wall Street firms, making it difficult for low- and middle-income families to purchase or rent homes.
– Job market and shareholder value: The prioritization of shareholder value over worker welfare, leading to job destruction, precarious work conditions, and decreased job security.
– Gender wealth gap: Women, particularly women of color, facing lower wages, higher debt, and limited access to wealth-building opportunities.
– Tax system: A tax system that favors the wealthy and large corporations, resulting in decreased government revenue and increased burden on lower- and middle-income individuals.
– Interest rates and economic growth: Concerns that elevated interest rates may be hurting U.S. economic growth, with investors worried about the impact on employment, manufacturing, and corporate earnings.
– Market volatility: Increased market volatility, with investors seeking safe-haven assets and showing a preference for sectors like utilities and healthcare.
