According to BlockBeats, on August 2, Bank of America strategist Michael Hartnett advised investors to sell stocks when the Federal Reserve initiates its first interest rate cut, citing an increased likelihood of a severe recession in the United States. Hartnett highlighted that the ISM Manufacturing Index appears to be closely aligned with non-farm payroll data. The only extended period when the index remained in contraction while non-farm payrolls continued to grow was between 1984 and 1986.

Strategists also noted that the extent to which risk assets have preemptively priced in the Federal Reserve's rate cuts for 2024 has reached its limit. The S&P 500 Index has surged by 32% over the past nine months. In contrast, the average increase before the Federal Reserve's first rate cut since 1970 has been only 2%.