Don't Buy the Dip: Analysts Warn Shares Are Vulnerable to Further Losses After Recent Sell-Offs
U.S. stocks kicked off August sharply lower as initial jobless claims rose the highest since August 2023, and manufacturing data signaled economic contraction, raising recession fears. European stocks fell around, and Japan's Nikkei index plunged on Friday, its worst day in over four years. Analysts say corrections are normal after an extended bull run, but shares look vulnerable to further falls, so it may be too early to buy the dip. The Fed signaled a possible September rate cut but investors await the August jobs report for clues on the pace of future cuts.
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00:00It's Benzinga, and here's what's on the block.
00:02U.S. stocks kicked off August sharply lower as initial jobless claims rose the highest
00:07since August 2023, and manufacturing data signaled economic contraction, raising recession
00:12fears.
00:13European stocks fell, and Japan's Nikkei index plunged on Friday, its worst day in
00:17over four years.
00:19Analysts say that corrections are normal after an extended bull run, but shares look vulnerable
00:23to further falls, so it may be too early to buy the dip.
00:27The Fed signaled a possible September rate cut, but investors await the August jobs
00:31report for clues on the pace of future cuts.