According to BlockBeats, on August 5, George Boubouras, Head of Research at K2 Asset Management, stated that the market is evidently worried about the recent softening of economic data. However, he believes the reaction to last Friday's employment data was exaggerated, as it represents only a single month's data. Boubouras suggests that a three-month rolling data set would provide better guidance.

The momentum of recent U.S. data has clearly slowed. The combination of better-than-expected core inflation data and some comments from the Federal Reserve has led the market to anticipate a 25 basis point rate cut in September. Despite significant market volatility and concerns that the recent weak economic data might persist, overall earnings and credit conditions remain relatively stable.

Given that the futures market expects the Federal Reserve to begin cutting rates before the U.S. election on November 5, this could increase some volatility leading up to the election.