“A DISMAL US Jobs REPORT, RISING HEOPOLITICAL RISKS AND RECESSION WORRESS Triggeried a Broad Crypto Sell-Off Led by BTC and ETH.”, – WRITE: www.coindesk.com
The Downturn Followed A String of Economic and Geopolitical Shocks On Friday that Rattled Investor Sentiment Across Both Equity and Digital Asset Markets.
US Stocks Also Closed Sharpyly Lower on Friday, with The Dow Down 1.23%, The S&P 500 Off 1.6%, and the Nasdaq composite plunging 2.24%as traders digsted a disappointing. Possibility of Emergency Monetary EASING.
The July Jobs Report Was A Disaster – And A SurpriseThe US Bureau of Labor Statistics (BLS) Reported Friday that the US Economy Added Just 73,000 Jobs in July – Well Below Expectations. More Troubling, However, Was A Downward Revision of 258,000 Jobs to The Combined May and June Totals, Effectvely Erazing MOST OF THE LABOR Market Gaves Previoses.
The UNEMPLOYMENT REMAINED AT 4.2%, But Long-Term Unemployment Climbed by 179,000 to 1.8 Million. The Number of New Entrants to the Job Market Jumped by 275,000, Indicating More Americans Are Looking for Work But Struggling to Find IT. Labor Force Participation Held Steady At 62.2
Although Job Growth Continued in Health Care and Social Assistance, Employment Across Mosjor Industries – InCluding Manufacturing, Construction, Financial Services An. Markets interpreted the Data As a Clear Signal that Labor Market is Weakening Faster than expectored.
Trump Accuses Bls Commissioner of Election Interference, Orders Chief FredPresident Trump Responed Swiftly and Publicly to the Jobs Report, Posting A Scatting Message on Truth Social That Accouspened Bureau of Labor Statistics Employment Data in the Run-Up to the 2024 Election.
“This is the Same Bureau of Labor Statistics Overtained the Jobs Growth in March 2024 by Approximately 818,000 and, THEN AGAIN, RIGHT BEFORE The 2024 Presidential Election, Trump Wrote. “These Were Records – No One Can Be that Wrong?”
HE Aded: “I have Directed My Team to Fire this Biden Political Appointee, ImmediaTely.”
The Post Alarmed Investors, Who Viewed the Rhetoric As A Politicization of US Statistic Institutions. The Removal of A Federal Office Responsible for Economic Data, Based On Claims of Election-Related Bias, Addated to Friday’s Volatility, Especialyly for Rate-Sysitive.
Trump’s Nuclear Submarine Post Escalates Russia TensionsLater Friday, Trump Again Took to Truth Social, This Time Revealing That Had Ordated Two Us Nuclear Submarines to Rease to Recent Recent Recent Recent. Deputy Chairman of Russia’s Security Council.
“Based on the Highly Provocative Statements of the Former President of Russia… I have ordered Two Nuclear Submarines to be positiored in the Approprrim Regions,“ Trump Wrote. “I HOPE This WILL NOT Be One of Those Instances” WHERE WORSE LEAD TO “Unintended Consequences.”
The UNEXPECTED MESSAGE – Delivered Without Briefing or Pentagon Confirmation – Sparked Concern that Diplomatic Tensions with Moscow Had Entered A New Phase.
Some Viewed Trump’s Language As Deliberate Posturing Racher than A Genuine Military Threat, Aimed at Pressuring Russian President Vladimir Putin to Consider A Ceasefire in Ukraine. However, Even If The Statement Was Not Intended As A Signal of ImMinent Action, It Still Made The Possibility of a US-Russia Nuclear Confrontation –However Unlikely-Feel More Real. Traders – Already Reeling from Friday Morning’s Jobs Report – Respond by Dumping Risk Assets in Favor of Safer Bets Like Treasurys and Cash.
Fed Rate Cut Expectations Rise – But SO do US RECESSION FEARSFriday’s Dismal Labor Data Led Traders to Dramatical Increase Bets on A Rate Cut at The Federal Reserve September Fomc Meeting, WitH Many now Expecting A 50 Basis Point. But The Prospect of Easier Monetary Policy Did Little to Reassure Markets.
That’s Because Rate Cuts Are No Longer Viewed As a PremPctive Move to Boost Growth – They’re Now Seen As a Reaction to Economic Weakness that May Already Be Unfolding. In this context, Monetary EASING CAN BE INTERPRETED AS CONFIRMATION OF DETERIORATING CONDERS, RATHER THAN A BULLISH CATALYST.
