The week saw a series of events that could have a significant impact on the financial markets. From the stock market’s shaky start to September to a veteran economist’s dire warning, here’s a quick recap of the weekend’s most crucial financial news.
Markets Slide Amid Tariffs, Rate Cut Bets
The stock market began September on a weak note, with U.S. stock futures tumbling on Tuesday. This drop followed Friday’s negative movements, with futures of major benchmark indices trading lower. President Donald Trump cautioned that a record $15 trillion in planned U.S. investments would be “immediately cancelled” if courts strike down his tariff policies.
Veteran Economist Warns Of Global Collapse
Economist Fred Harrison, known for accurately forecasting the 2008 financial crisis, warned about converging crises that could create chaos. The 81-year-old veteran economist, who played a key role in forming Russian economic policy after the fall of the USSR, described the situation as something he’s “never experienced in my lifetime.”
Trump’s Tariffs Now Seen As Fiscal Lifeline
President Donald Trump‘s controversial tariffs have emerged as a financial boon, shielding the U.S. from the recent global bond market turmoil. Initially a cause for concern, the tariffs are now viewed as a crucial element of Washington’s financial stability. This shift in perspective has helped the U.S. avoid the worst of the recent government bond market sell-off.
Markets Tumble, VIX Spikes, Gold Soars
Wall Street stumbled on Tuesday, with broad losses by midday in New York as investors turned risk-off amid mounting concerns over lofty valuations, seasonal headwinds, and fiscal strains. The CBOE Volatility Index (VIX) — Wall Street’s “fear gauge” — surged nearly 20% to 19.2, marking its third consecutive advance.
Wall Street Rallies On Weak Jobs Data & Fed Rate Cut Bets
Risk appetite returned to Wall Street on Thursday, as signs of labor market cooling in August cemented expectations that the Federal Reserve will begin cutting interest rates at its Sept. 17 meeting. The ADP National Employment Report showed just 54,000 jobs were added in August, a steep decline from 106,000 in July and well below the 65,000 median forecast.
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