There are fears that we're entering the Early stages of a possible recession That was due to stocks plunging Monday The Dow Jones fell 2.6 percentage points Senior business and Tech correspondent Jolene Kent our friend and colleague is Here for analysis Jolene what's the Reality of what has happened today on Wall Street the reality is today you're 401k And a lot of Investments took a pretty Big hit what we saw overall is that the Dow was down 2.6% the P 500 down 3% Overall though experts are saying that This is something that was coming in Terms of a correction so to speak the Tech heavy NASDAQ officially in Correction territory as of last Friday Due to that jobs report coming in lower Than expected now the number of jobs Added were weren't actually it wasn't Actually a bad number but it missed what Wall Street was expecting and as a Result of that unemployment number Ticking up you saw the day on Wall Street on Friday and then concerns of a Possible early stage of recession here In the US over the weekend that then Triggered a major selloff in Japan the Nik having its worst day down 12% on Monday and as a result that continues to Have an effect here on Wall Street for All major indices ending today in the Red but overall the experts say Bob they
Say do not panic hold on try not to look Too closely at the markets the idea is If you are investing is to hold on to Your Investments over the long term and You will continue to see gains now if You look back at the numbers too over The past year the past 12 months all Major indices are actually up by at Least 9% so even though we're seeing a Day that's deep in the red today and Certainly a lot of tumbling across the Market overall if you continue to invest In that 401k and you're holding on You're still going to be in a pretty Favorable position but certainly uh has A lot of people talking including on the Campaign Trail Bob jooling what are you Watching now in the wake of all of This yeah I think the most important Thing right now and I was just in Washington and we were at the Federal Reserve meeting last Wednesday I asked Jerome Powell the chair of the FED know What is going to come next how is he Going to handle what's coming down the Pike and the market expectation right Now is that the FED may have have acted A little too slowly maybe they should Have cut interest rates last week just a Few days ago and the idea now is that The market is pricing in not just a Quarter point uh a cut in terms of rate Cuts but maybe a half a point which Would help a lot of people get back into
The housing market when it comes to Getting a mortgage that's slightly more Affordable than it is now we also see Mortgage rates already coming down a Little bit today so the idea is when you Look ahead to mid-september and that Federal Reserve meeting we do expect a Rate cut that's something that the FED Has been telegraphing to us for a long Time but now that looks maybe that it Could be a little bit more certain Bob And just finally here in a minute Jo Ling when you were down covering the FED Talking to the chair what else were were Were people really putting on his plate What are they watching in terms of the Federal Reserve and what it could do Next well of course politics is the name Of the game right now you know that Better than anyone else out there so I Ask Fed chair Powell look there's a lot Of criticism coming from former President Trump that if you do cut Interest rates come September that it'll Be too close to the election that the FED should not do this this is what the Former president has said time and time Again especially on Shu social lately And what he said is that the FED does Not act in a political manner whatsoever They do not account for any candidate When it comes to making policy going Forward making those interest rate Decisions
So he says they're staying out of Politics they're looking just at the Data and you can bet the data they're Looking at is inflation jobs reports Anything related to the labor market and Stabilizing prices those remain According to the Federal Reserve the Core tenants of what they're trying to Achieve so if you were to look at what To expect a mid-september rate cut of Possibly half a point is very much on The table according to those who are Following this day in and day out here Here in the markets and looking at what The the future could hold Bob great Reporting it's a good point that even if The FED doesn't see it that way politics Always hovers near monetary and economic Policy Joe L Kent thank you so much for Your reporting
