Stock Market Volatility as Data Shows Cracks in US Economy

Tech and chip stocks crash, dragging down the Nasdaq and S&P 500, as weak data reveals cracks in the US economy. The 10-year yield falls below 4% due to contracting manufacturing and rising jobless claims.

Piper Sandler warns that slower data may not be good news. Traders anticipate a rate cut in September.

Though some tech companies like Meta, Apple, and Amazon provide relief with positive earnings, others like Alphabet, Microsoft, and Tesla face resistance. Falling bond yields and disappointing global economic indicators contribute to market uncertainty.

The Bank of England cuts rates, while the Bank of Japan raises rates and the Bank of Korea is expected to cut. Investors react to recession fears triggered by tech earnings, manufacturing slowdown, rising unemployment, and inflation data.

The stock market's strong performance this year adds to concerns. Some experts draw parallels between the current stock market and the dot-com bubble, while others argue that fundamentals and valuations differ.

European and US equity futures rise on hopes of a Fed rate cut, and oil prices climb due to Middle East tensions.