The new data is causing panic. Panic was caused by poor US labor market data – unemployment rose to 4.3 percent in July. Although unemployment is still very low from a historical point of view, the markets are worried about the rapid growth – at the beginning of the year, unemployment reached only 3.7 percent.
When the normal labor market changes direction, it tends to hold. More importantly, unemployment rises rapidly and falls slowly. in 2008 example of a crisis – unemployment in the USA in 2007 at the beginning was only 4.6 percent, but in 2009 reached 10 percent at the end. After the peak, it took about 7 years to return below the pre-crisis level.
Markets are falling all over the world. Markets were already down in the west on Friday, but this morning the selling continues in even higher gear. The S&P 500 fell 1.8 percent on Friday, with futures signaling another 2.7 percent gain today. fall
In other markets, the situation is similar – since Thursday's closing, European markets have fallen by about 4.5 percent, Japan's Nikkei 225 and South Korea's Kospi indices slipped by about 12 and 9 percent. down this morning. Tech stocks, which had risen sharply, are also falling sharply, with the NASDAQ down 2.4 percent on Friday and futures down about 5 percent this morning.
