Stocks are plunging. The Nasdaq 100 entered correction territory. Unemployment is on the rise. And now, investor excitement about Federal Reserve rate cuts in September is being tempered by growing concern about the overall health of the US economy.
The calm and contentment of this latest bull run started to crack July 24th, when the S&P 500 posted drop of 2% or more for the first time in 17 months. Now, after the biggest two-day selloff since March 2023, the anxiety has ratcheted up significantly, as the Fed faces criticism it waited too long to cut and weak earnings batter the technology companies that were driving the rally.