The narrative on Wall Street is shifting as traders anticipate a rate cut by the Federal Reserve in September. This expectation had been factored into the stock market, resulting in rising stock prices. However, concerns are now emerging regarding the Fed’s response to the weakening labor market. Fed Chair Jerome Powell recently acknowledged cracks in the job market. This has caused fear among investors, leading to a significant drop in stock prices on Thursday. Despite some weak earnings reports and concerns about tech regulation, the US economy remains strong, with signs of improvement in housing data. The coming months will be crucial in understanding the trajectory of America’s economic growth.
