The Growth Scare Is Here (What It Means for Markets)
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What’s in Today’s Report:
- The Growth Scare Is Here (What It Means for Markets)
- Weekly Market Preview: How Far Can This Pullback Go?
- Weekly Economic Cheat Sheet: Important Growth Report Today
Futures are plunging globally on snowballing concerns about economic growth following Friday’s soft jobs report.
Global growth concerns are the main reason behind the stock weakness but technical factors are majorly at play, as the Nikkei fell 12% on Monday (not a typo) despite no real, negative news (other than a continued yen rally).
Economically, actual data was solid overnight as both the EU and UK Composite PMIs slightly best estimates but that’s being ignored in the global selloff.
Today the key number is the ISM Services PMI (E: 51.0) and this number needs to print back above 50 (and ideally above expectations) to help stocks stabilize. If we see another sub-50 number or it’s worse than last month, expect growth concerns to intensify and for this selloff to worsen.
For the Fed, there is one speaker today, Daly at 5:00 p.m. ET, but she shouldn’t move markets.
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