A weaker-than-expected jobs report Friday kicked off fears of an impending recession, sending equities on a downward spiral through Monday’s close, while bonds rallied. But economists say the economy remains strong, and while the jobs report missed projections, more than 100,000 jobs were added … not a shabby gain.
“U.S. economic growth data have been surprising to the downside since the end of April, but the July payrolls report released on Friday seems to be the proverbial straw that broke investors’ back,” said Jason Draho, head of Asset Allocation Americas at UBS Global Wealth Management. “Growth concerns flipped to recession fears, with some investors arguing that the Fed is waiting too long to cut rates.”
Recession fears sent stocks tumbling, with the Dow Jones Industrial Average losing 1,033.20, after being down 1,237.99 in early morning trading. Other equity markets also dropped big, with the S&P down 3% and the Nasdaq…
