Fears that the US economy is slowing, with companies losing jobs and imposing foreclosures, sent Wall Street tumbling on Thursday.
The S & P 500 Index of leading companies fell 1% as investors also highlighted concerns about the possibility for the value of businesses that benefit from large investments in artificial intelligence. The tech-heavy Nasdaq composite fell 1.5%.
A report shows that last month is Worst October for US layoffs since 2003which caught the attention of investors in the absence of official data that was prolonged by the Federal Government Government Shutdown.
Companies are cutting jobs and imposing foreclosure freezes, according to Global Outplacement Firm Truster, Gray and Christmas.
Chris Beauchamp, the Chief Market Analyst of the Trading Platform IG.com, said: “The lack of US data and the ongoing government shutdown are making investors.”
US markets are focused on a review of Donald Trump’s tariffs by the Supreme Court, which could result in the US president being forced to abandon his burdensome policy.
A lack of official data has also forced the Federal Reserve to judge the state of the US economy with a piece of information that is usually averse to interest rates.
Beavachamp said the Fed Markets found themselves “sliding in the dark” after the suspension of inflation and employment data.
Speaking to CNBC, the Member of the Fed Board AustNan AustBee said that the lack of official data on inflation during the government’s restraint is driving more interest rates.
“I sum up more than that, when it’s foggy, let’s just be careful and slow down,” he said.
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Fallenger, Gray and Pasko’s survey found that employers announced 153,074 job cuts in the last 1024 years.
The FTSE 100 fell 41 points or 0.4%. European stocks also fell. The Stoxx Europe 600 closed 0.7% lower, with tech stocks suffering the heaviest losses, and Germany’s Dax fell 1.3%.
Beauchamp said: “If the Supreme Court acts on some tariffs then inflationary concerns worry, although this is a topic that will not come to fruition for weeks.”