On August 4, 2024, the stock market was, like, totally having a meltdown. All the big names—Dow Jones, S&P 500, and Nasdaq—were just, like, tanking. The Dow dropped 610.71 points to close at 39,737.26, the S&P 500 fell 100.12 points to 5,346.56, and Nasdaq was down 417.98 points to 16,776.16. I mean, can you even?
What’s the Drama?
Jobs Report Woes: The U.S. jobs report came out, and it was, like, way worse than everyone thought. They were expecting 200,000 new jobs, but only got 75,000. Major bummer, right? Plus, the unemployment rate went up to 4.3% from 4.1%. Everyone’s freaking out about a recession now.
Inflation Is So Not Fetch: Inflation is, like, still a major issue. The Consumer Price Index (CPI) for July showed prices going up 6.2% compared to last year. This is, like, squeezing everyone’s wallets and making things super expensive.
Geopolitical Tensions Are The Worst: And don’t even get me started on the drama in geopolitics right now! Russia continues it’s attack on Ukraine, which means it’s having relationship issues with NATO. The relationship between US and China remain toxic, including trade disputes and technology restrictions. There are increasing concerns on potential cyberattacks, and rising climate risks. And the Israel-Iran conflict is making oil prices go up, all of which is just adding to all the inflation stress.
What Are the Experts Saying?
Dharmesh Shah from ICICI Securities is all, “We are advising investors to keep an eye on key support levels and look for opportunities to buy quality stocks at lower levels.”
Jeffrey Kleintop, Chief Global Investment Strategist at Charles Schwab, said, “The markets are dealing with a perfect storm of bad news: slowing jobs, a strong yen, and bad tech earnings. The Cboe Volatility Index (VIX) is above 60, which is super high and making everyone nervous. While the current downturn might be overdone, any signs of economic relief could lead to a market rebound next week.”
What’s Next?
Everyone’s watching the upcoming economic reports, like the ISM Services PMI, which should go up to 51.0 from 48.8, and the final reading for the eurozone’s July services PMI. Investors are also waiting for comments from Fed officials because we might get some rate cuts soon.
Wells Fargo Investment Institute emphasized, “The latest economic data, including factory orders and durable goods orders, came in weaker than expected. Investors are closely watching the final readings of July’s services and composite Purchasing Managers’ Indexes (PMIs) and upcoming comments from multiple Federal Reserve speakers.”
Stock Tips and Strategies, OMG
Despite all the craziness, some analysts are still optimistic. Dharmesh Shah recommended looking at stocks with strong fundamentals like GAIL and JSW Energy (mint). And Madhabi Puri Buch, SEBI Chief, mentioned that India is killing it with IPOs right now, saying, “India has ranked number one on the global league tables for initial public offerings (IPOs).”
Fidelity was quoted saying, “It has been almost 20 years since bonds presented as attractive an opportunity as they are likely to in the second half of 2024.” And MFS added, “We’re maintaining an overweight position in bonds due to their attractive risk-adjusted return potential” (Park Avenue Securities).
Analysts at James Investment said, “Investors are keenly observing which companies will benefit the most from AI and when these investments will start to pay off.” They expect the benefits of AI to unfold in stages, starting with infrastructure providers like Nvidia, then moving to cloud vendors, and eventually reaching software firms and the wider economy (James Investment).
The Bottom Line
This market meltdown is, like, totally stressing everyone out. But as always, staying informed and diversifying your investments is key. The market’s a total rollercoaster, and the situation is evolving, so keep an eye on economic reports and expert insights to navigate these crazy times. As always, do your own research and maybe snag some advice from your financial guru before diving in.
So, that’s the scoop! Keep your eyes peeled and your portfolios diversified, babes!
XOXO,
Valley Girl News