Market in turmoil, NASDAQ sinks +3% as Nonfarm Payrolls highlight labor market slowdown

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Market in turmoil, NASDAQ sinks +3% as Nonfarm Payrolls highlight labor market slowdown
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The stock market pullback that began in the latter half of July is pumping the brakes full force on Friday after US Nonfarm Payrolls for last month surprised to the downside.

US economy adds 114K jobs in July, well below Wall Street expectations. US indices reel on news as Unemployment rises to 4.3%. Market now expects three interest rate cuts by Fed this year, 50 bps cut in September. Elliot Management calls AI narrative overhyped. With Wall Street expecting an already low figure of 175K, US payrolls added just 114K positions in July, and June’s figures of 206K new jobs was revised down to 179K. The Unemployment Rate rose from 4.1% to 4.3%.

news All the bright spots in the summer narrative are now being discarded. Hedge fund Elliot Management released an editorial in The Financial Times arguing that the artificial intelligence theme is “overhyped”. The mega cap tech stocks like Microsoft , Meta Platforms and Amazon are also on the verge of reducing their supercycle of buying Nvidia’s AI-focused chips, according to Elliot, which should put downward pressure on the overall market.

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