All current data points to a soft landing for the U.S. economy. A soft landing means the economy slows down but does not fall into recession.
The decline in U.S. stocks was not entirely due to the non-agricultural data. In fact, before the non-agricultural data was released, U.S. stocks had been falling for several consecutive days. Non-agricultural data is good news from the perspective of interest rate cuts. After all, this situation is more favorable than an overly strong data triggering the risk of not cutting interest rates in September. Therefore, the current decline is more like the second wave after 8.5 confirmation or a normal callback.
After the interest rate meeting in September and the release of the dot plot, the market's reaction will determine the general trend in the next few months. If the U.S. stock market stops falling and stabilizes thereafter, the more it falls before, the stronger the rebound may be; but if it continues to fall, the market's risks will increase significantly.
Don't be too pessimistic. A bull market is an opportunity for longs, and a bear market is also an opportunity for shorts. The key is to grasp the direction. No matter it rises or falls, it is an investment opportunity.
