On Monday, the Hang Seng Index dropped by 182.41 points, or 1.05%, to open at 17,261.89. The decline reflects growing unease about the state of the US economy.
US Economic Uncertainty Impacts Markets
Market volatility has increased due to uncertainty surrounding the US economy. This uncertainty comes at a time when investors are already dealing with a shift in Federal Reserve policy, an upcoming US election, and concerns about inflated market valuations.
US Jobs Data Raises Alarm
US stocks experienced a significant drop on Friday following disappointing jobs data. The data revealed that labor market momentum is slowing more than anticipated. This development has raised concerns about the US’s ability to achieve a “soft landing”—a scenario where the Federal Reserve can reduce inflation without severely harming economic growth.
Federal Reserve’s Upcoming Decision
The Federal Reserve is expected to cut interest rates at its September meeting. However, the recent jobs data has reignited fears that the prolonged period of high borrowing costs might already be impacting the economy.
