Pretty massive drops in the stock market over the past two days. Similar to the 1987 Black Monday crash, but brought on by multiple factors at once:
-Japan's currency and interest changes, which was a major tool for the speculation market, causing them to sell off positions.
-Hype around AI weakening, showing that those recent massive gains were a bit of a bubble.
-Weak recent jobs report with indicators that unemployment is rapidly rising, triggering the Sahm rule.
Quote:
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The unemployment rate has soared this year from 3.7% to 4.3%. That trend has triggered a recession indicator known as the “Sahm Rule,” which says that a rise of 0.5 percentage points in the unemployment rate within a 12-month period typically precedes a recession
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https://abcnews.go.com/Business/rece...a%20recession.
Recession is very likely coming now. Just how bad? Dunno, but this should play a major factor in the upcoming election. The Democrats can no longer claim the economic high ground, but voters experiencing a recession would also very much be in favor of Trump's massive tax cut plans and vote for him purely for those reasons. The fed may not want to cut interest rates too much in order to keep inflation in check, so that may increase the possibility of recession as well. I'm far from a financial expert, so maybe someone else has something to add to help understand everything that's going on?
Maybe the timing of this is too close to the election and won't hit the average voter for another 6 months, but it is a concerning factor that could sway voters.