US Economy Slows, Fueling Rate Hike Expectations & Market Swings
Recent US jobs data revealed a weaker-than-expected increase of only 22,000 jobs in August, alongside downward revisions for the previous two months. This has intensified expectations for a potential interest rate hike by the Federal Reserve in mid-September, and raised concerns about a possible recession.
Commerzbank analysts noted the slowdown mirrors conditions preceding the fed’s last rate hike cycle, stating the fed may feel pressure to “act faster now” after waiting too long. VP Bank echoed this sentiment, declaring the US economy is “on a descent” and the labor market data indicates a “paralyzed” economy.
Market Highlights:
Semiconductors Surge: Broadcom shares jumped over 9% following strong earnings driven by demand for AI solutions.
Tesla Gains on Musk Deal: Tesla stock rose 3.6% after unveiling a potentially $1 billion remuneration package for CEO Elon Musk, contingent on ambitious company goals.Analysts at UBS believe the deal signals Tesla’s future potential and aligns Musk’s interests with shareholders. A shareholder vote is scheduled for November 6th.
Lululemon Plummets: The athletic apparel company saw its share price fall nearly 20% after lowering its business outlook.
BioNTech Rises on Cancer Therapy: BioNTech shares increased over 8% following promising interim results from a breast cancer therapy study.
