On Thursday, the cryptocurrency market followed the downward trend of the stock market, as investors prepared for the release of the U.S. jobs report on Friday. Bitcoin (BTC) fell 3.6% over the past 24 hours, while all major U.S. stock indices also saw declines. In contrast, gold experienced a 1% rise, climbing back above the $2,500 per ounce mar
Recession Fears Grow Amid Market Slump
Concerns over a potential U.S. recession have fueled market anxiety. By midday on September 5, the Russell 2000, Dow Jones, Nasdaq, and NYSE were all in negative territory. Investors are awaiting Friday's jobs report for further economic signals, as more signs of weakness begin to emerge.
One of the warning signs is the U.S. Treasury yield curve, which has been inverted for over two years—a common indicator of an impending recession. Additionally, the Sahm Rule, a reliable predictor of recessions, has recently been triggered, further heightening concerns.
Hopes for a “Soft Landing” Persist
Despite the market slump and recession fears, some experts remain hopeful that the U.S. economy could still achieve a “soft landing.” Emmanuel Cau, head of European equity strategy at Barclays, told CNBC that although economic data has been mixed, it has not completely deteriorated. Cau added that global interest rate cuts could help the economy extend its cycle into 2025, potentially avoiding a harsh recession.
