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☆ Markets are counting on the Fed to head off recession with sizeable interest rate cuts
▼ + stars: | 2024-08-06 | by ( Jeff Cox | Jeff Cox Is A Finance Editor With Cnbc.Com Where He Covers All Aspects Of The Markets | Monitors Coverage Of The Financial Markets | ) www.nbcnews.com time to read: +5 min

Disappointing economic data recently generated worries that the Fed missed an opportunity at its meeting last week to, if not cut rates outright, send a clearer signal that easing is on the way. In the past, the Fed has implemented just nine such cuts, and all have come amid extreme duress, according to Bank of America. Lacking a catalyst for an intermeeting cut, the Fed is nonetheless expected to cut rates almost as swiftly as it hiked from March 2022-July 2023. Why wait?”LaVorgna, though, isn’t convinced the Fed is in a life-or-death battle against recession. Still, any quakes in the data, such as Friday’s downside surprise to the nonfarm payrolls numbers, could ignite recession talk quickly.

Persons: Jerome Powell, ” Steven Blitz, ”, Andrew Hollenhorst, ‘, ’ ”, Michael Gapen, Powell, Joseph LaVorgna, “, “ They’ll, isn’t, Goldman Sachs, David Rosenberg Organizations: Federal Reserve, TS Lombard, Fed, Citigroup, Bank of America, Nikko Securities, Rosenberg Research Locations: Jackson Hole , Wyoming, Nikko

mapodile/E+/Getty ImagesFor individual investors, the quick-turn global rout in stocks on Monday was unsettling, even with news Tuesday that there is somewhat of a bounce-back going on. But if you’re investing in a 401(k), daily market dramas are no reason to take dramatic actions with your portfolio. Andy Smith, executive director of financial planning at Edelman Financial Engines, puts it this way: “Separate your emotion from your money. Say you set up a portfolio of 70% stocks and 30% bonds but now it’s morphed into a 60/40 portfolio. And remind yourself periodically that even bear markets have not stopped the long-term increases in stocks over time.

Persons: you’re, ” Quincy Krosby, Andy Smith, it’s, Smith Organizations: LPL, Edelman

☆ Now is the time to 'buy things on sale' in the stock market, advisor says. Here's what to know
▼ + stars: | 2024-08-06 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +1 min

"What would you buy that you know that your household would need for the future?" "That could be like paper towels, it could be toilet paper, it could be things that you know that you're going to need long term." It's smart to adopt a similar mindset when the stock market pulls back as it did Monday, said Sun, who is also a member of the CNBC Financial Advisor Council. "When the stock market pulls back at these levels, these are great opportunities to invest in core names or a quality portfolio that you always wanted," she said. "It's better to buy things on sale than to buy at full price."

Persons: Winnie Sun, Sun, Roth Organizations: Sun Group Wealth Partners, CNBC, Finance, Dow Jones, Nasdaq, Dow Locations: Irvine , California

☆ Stock market today: US indexes try to claw back deep losses after 3-day meltdown
▼ + stars: | 2024-08-06 | by ( Max Adams | ) www.businessinsider.com time to read: +2 min

With little data on the horizon, investors will look to Thursday's jobless claims for more clue about the economy. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementUS stocks rallied on Tuesday as shaken investors looked to claw back some of the losses incurred in a historic three-day rout. Jobless claims on Thursday will be the next clue about the health of the labor market. If weekly claims come in well past the 245,000 estimated by economists, it could spark another decline for stocks.

Persons: —, they're, Ed Yardeni Organizations: Dow, Service, Nasdaq, Bank of America

☆ Trump quiet on markets after stock rebound robs him of 'Kamala Crash' attack line
▼ + stars: | 2024-08-06 | by ( Rebecca Picciotto | ) www.cnbc.com time to read: +4 min

Republican presidential nominee and former U.S. President Donald Trump holds a campaign rally in Harrisburg, Pennsylvania, U.S., July 31, 2024. It requires steady leadership — the kind President Trump delivered for four years." Trump published at least nine separate posts on Truth Social Monday, blaming the stock market slump on the administration's policies under President Joe Biden and Harris. "THIS IS THE TRUMP STOCK MARKET," Trump wrote in an all-caps Truth Social post, "BECAUSE MY POLLS AGAINST BIDEN ARE SO GOOD THAT INVESTORS ARE PROJECTING THAT I WILL WIN, AND THAT WILL DRIVE THE MARKET UP." "Former President Trump is the first to do that," Zandi added.

Persons: Donald Trump, Kamala Harris, Harris, Kamala, KAMALA, Trump, Ohio Sen, JD Vance, Joe Biden, Dow, Biden, Mark Zandi, Zandi Organizations: Republican, Dow Jones, Dow, Federal Reserve, Trump, Democratic, TRUMP, CNBC, BIDEN, WIN, Voters Locations: Harrisburg , Pennsylvania, U.S

☆ CNBC Daily Open: Dow sheds 1,000 points
▼ + stars: | 2024-08-06 | by ( Abid Ali | Kevin Lim | ) www.cnbc.com time to read: +3 min

CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Wall Street sinksThe Dow Jones Industrial Average and the S&P 500 suffered their sharpest declines in nearly two years, as growing concerns about the U.S. economy rocked global stock markets. The Dow plummeted over 1,000 points, while the S&P 500 and Nasdaq Composite fell 3% and 3.4%, respectively. Wharton finance professor Jeremy Siegel urged the Federal Reserve to make an emergency 75-basis-point cut in the federal funds rate following Friday's disappointing jobs data. [PRO] Don't panicDespite a global stock market rout, several investors and strategists advised against panicking at this point.

Persons: Berkshire Hathaway, Amit Mehta, Wharton, Jeremy Siegel, Siegel, Austan Goolsbee, Goolsbee, CNBC's, cryptocurrencies, Bitcoin, bitcoin, Nexo, Antoni Trenchev, panicking Organizations: CNBC, Dow Jones Industrial, Dow, Nasdaq, Tech, Nvidia, Tesla, Berkshire, Google, Department of Justice, Federal Reserve, Chicago Federal, bitcoin Locations: U.S

☆ Chief money managers are using the stock-market carnage to funnel into key sectors. Here's what they're buying.
▼ + stars: | 2024-08-06 | by ( Laila Maidan | ) www.businessinsider.com time to read: +7 min

Thursday brought more negative news from the jobs market: unemployment insurance claims for the week ending July 27 were up by 14,000 from the previous week to 249,000. Stepping back from last week's weak data, chief investment officers and top strategists say the market is overreacting, and they're using this as a buying opportunity. Related storiesSimilarly, the manufacturing data is not as foreshadowing as it seems on the surface. "But the ISM manufacturing data can be a leading indicator of S&P earnings, particularly the new order number." "If you look at non-US stocks and you look at their valuations, they're trading at about 13 times earnings," Calcagni said.

Persons: Dow, we've, Philip Straehl, Morningstar, Goldman Sachs, Jan Hatzius, Alicia Levine, Levine, it's, what's, Morningstar's Straehl, Simeon Hyman, Hyman, Donald Calcagni's, Calcagni Organizations: Service, Nasdaq, Institute for Supply, Business, BNY, Big Tech, Mercer Advisors Locations: Americas

☆ Everything you wanted to know about the market meltdown but were too afraid to ask
▼ + stars: | 2024-08-06 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +9 min

In today's big story, we're giving a full breakdown of what has been a wild few days for the market . Tech: Big Tech is going through a bit of a mid-life crisis . Big Tech is going through a bit of a . There are a few factors at play here:Big Tech, the backbone of the market, had weaker-than-expected earnings last week. The decision could seriously hurt Google's revenue and may signal more antitrust enforcement to come for other Big Tech companies .

Persons: —, Airbnb, Rebecca Zisser, We're, what's, Warren Buffett's, Berkshire Hathaway, I'm, Claudia Sahm, M, Getty, Jenny Chang, Rodriguez, Jensen Huang, Citadel's Ken Griffin, Griffin, it's, Natalie Ammari, That's, Elon, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, Annie Smith, Amanda Yen Organizations: Service, Business, Tech, Big Tech, Nasdaq, Federal Reserve, Apple, Oracle, Fed, Nvidia, Bank of America, Google Locations: Japan, Berkshire, Omaha, Asia, bitcoin, Florida, New York, London

☆ Stocks in these 4 sectors can help investors weather the historic surge in volatility, Bank of America says
▼ + stars: | 2024-08-06 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Subramanian said investors should buy defensive stocks so they can "sleep at night." According to Bank of America strategist Savita Subramanian, investors should "get used to the volatility." AdvertisementTo combat expectations of continued volatility, Subramanian said investors should buy defensive stocks that would allow them to "sleep at night." "The best hedge is owning high quality stocks," Subramanian said of combating market volatility. Most of these defensive stocks are found in defensive sectors, which include consumer staples, healthcare, real estate, and utilities.

Persons: Savita Subramanian, Subramanian, —, They're, Stocks Organizations: . Bank of America, Service, Bank of America, Procter, Gamble, Kroger, PepsiCo, Walmart, Utilities, Investors, Consolidated Edison, Alliant Energy, CMS Energy, Healthcare, Quest Diagnostics, Essex Property Trust, Digital Realty Trust Locations: Essex

☆ Investors believe the fears about the slowing economy are overblown and market is overreacting
▼ + stars: | 2024-08-06 | by ( Sarah Min | ) www.cnbc.com time to read: +6 min

The S & P 500 is off by nearly 9%, and it could soon join the tech-heavy index. .VIX 1D mountain VIX On Wall Street, however, many investors expect the fears of a slowing economy are overdone, and that markets are overreacting. "We don't see an earnings recession, we don't see an economic recession," said Sam Stovall, chief investment strategist at CFRA Research. The strategist expects the S & P 500 could fall into a correction, somewhere between 10% and 15%. To be sure, investors who aren't expecting a recession say any weakness in the consumer should continue to be monitored.

Persons: It's, Stocks, Mark Malek, Siebert, Malek, nonfarm, John Butters, —, Sam Stovall, Stovall, that's, aren't, Siebert's Malek, Jamie Meyers, he's, we've, it's, I've, Meyers, CFRA's Stovall Organizations: Nikkei, Nasdaq, Dow Jones, Treasury, Fed, Federal Reserve Bank, Atlanta's, Bank of America, CFRA, Nvidia Locations: Japan, U.S

☆ The latest sell-off may be the beginning of the end for the tech bubble, strategist says
▼ + stars: | 2024-08-06 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

The AI-fueled tech bubble could be approaching its end date, according to Paul Dietrich. The market strategist pointed to similarities between the recent tech sell-off and the dot-com crash. He pointed to the similarities between the dot-com crash and the latest drop in the stock market. AdvertisementThe flow of "smart money" in the market also suggests more downside could be on the way for tech stocks, Dietrich noted. Advertisement"What kind of evidence does one need to see that we are moving into a business cycle recession," Dietrich said.

Persons: Paul Dietrich, —, Dietrich, Jeff Bezos, Mark Zuckerberg, Jensen Huang Organizations: Service, Riley Wealth, Nasdaq, Apple, Meta, Nvidia, Artificial Intelligence

☆ The stock market is panicking, but you don’t have to
▼ + stars: | 2024-08-06 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

To be sure, the carnage on Wall Street and in equities markets around the world was real. But Monday’s panic was the Wall Street equivalent of a tantrum from a kid who just got told they can’t have ice cream for dinner. But don’t let the stock market drama fool you: The US economy is still in good shape, despite some turbulence. “And I’m not too worried about Wall Street becoming poor.”Stocks looked to bounce back Tuesday. Wall Street worked itself into a lather when ChatGPT came out two years ago.

Persons: CNN Business ’, Stocks, Dow, Wall, don’t, Rana Foroohar, That’s, it’s, Goldman Sachs, ”, Jan Hatzius, ” Goldman, There’s, Beryl, “, Beryl didn’t, Aaron Sojourner, ’ ”, ChatGPT, Rob Haworth, ” Haworth Organizations: CNN Business, New York CNN, CNN, Nikkei, of Labor Statistics, Coast, BLS, WE Upjohn, Employment Research, White House Council, Economic Advisers, Fed, Federal, Markets, Big Tech, Nvidia, Microsoft, Wall, Bank of Japan, US Bank Locations: New York, Japan

☆ Why a full-fledged bear market is still unlikely even after the latest sharp sell-off
▼ + stars: | 2024-08-06 | by ( Matthew Fox | ) www.businessinsider.com time to read: +4 min

Bank of America says the recent stock market sell-off is unlikely to be the start of a new bear market. AdvertisementThe stock market's recent sharp sell-off is unlikely to transform into a full-fledged bear market, according to Bank of America. But according to Bank of America strategist Savita Subramanian, the tell-tale signs of a stock market peak have yet to materialize. AdvertisementFor perspective, Subramanian pointed to stock market history to highlight that pullbacks in the market are common. Instead of preparing for a prolonged market sell-off, Subramanian recommends investors go bargain hunting and focus on buying high quality stocks.

Persons: BofA, —, Savita Subramanian, Subramanian Organizations: of America, Credit, Service, Bank of America, Nasdaq, Conference, Senior

☆ The yen carry trade unwind: A big complication for global markets
▼ + stars: | 2024-08-06 | by ( Bob Pisani | ) www.cnbc.com time to read: +4 min

In its simplest form, the yen carry trade has investors borrowing cheap yen to invest in higher yielding assets, often currencies. For example, because there is not a central source to track currency trades, we have no idea how big the yen carry trade is. The yen is rising, and that is making the yen carry trade less profitable. If the yen goes from 155 to 145, which is where it traded Monday, it will take $68,965 to repay that 10 million yen (10 million yen divided by 145 = $68,965). One positive sign: the ETF to watch is the Invesco Japanese Yen ETF (FXY), which tracks the price of the Japanese yen, had volume six times normal yesterday.

Persons: That's, Nicholas Colas Organizations: Nikkei, Street Journal, Federal Reserve, Bank of Japan, U.S, U.S ., Yen ETF Locations: U.S, Japan

☆ Analyst outlines the 'best weapons' long-term investors can use to deal with market volatility
▼ + stars: | 2024-08-06 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAnalyst outlines the 'best weapons' long-term investors can use to deal with market volatilityAmer Halawi, head of research at Al Ramz Corporation, discusses volatility in stock markets.

Persons: Amer Halawi Organizations: Amer, Al Ramz Corporation

☆ The popular 'carry trade' is unwinding — and economists fear Fed rate cuts could make matters worse
▼ + stars: | 2024-08-06 | by ( Sam Meredith | In Samuelmeredith | ) www.cnbc.com time to read: +1 min

Rapid interest rate cuts from the Federal Reserve could make matters worse for the global "carry trade" unwind, according to economists at TS Lombard. The warning comes as market participants seek to aggressively roll back on carry trades following a dramatic global sell-off in risk assets. Carry trades refer to operations wherein an investor borrows in a currency with low interest rates, such as the Japanese yen, and reinvests the proceeds in higher-yielding assets elsewhere. The readings led investors to worry that the Federal Reserve may be behind the curve in cutting interest rates to fend off a recession. But this would exacerbate any carry trade unwind," economists at TS Lombard said in a research note published Monday.

Persons: paring Organizations: Federal Reserve, TS Lombard, Stock, Federal Locations: Europe

☆ Recession Fears May Be Overstated, but Not Unfounded
▼ + stars: | 2024-08-06 | by ( Ben Casselman | ) www.nytimes.com time to read: 1 min

It emerged from the pandemic shock more quickly and more powerfully than many experts envisioned. It proved resilient in the face of both inflation and the higher interest rates the Federal Reserve used to combat it. The prospect many forecasters once considered imminent — a recession — looked increasingly like a false alarm. An unexpectedly weak jobs report on Friday — showing slower hiring in July, and a surprising jump in unemployment — triggered a sell-off in the stock market as investors worried that an economic downturn might be underway after all. By Monday, that decline had turned into a rout, with financial markets tumbling around the world.

Persons: — Organizations: Federal Reserve Locations: U.S

☆ 'Hot money is saying sayonara': Japan fund manager names outperforming sector to buy amid sell-off
▼ + stars: | 2024-08-06 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

As Japanese stocks plummet, confirming a bear market, there are opportunities in small-cap and domestic-focused companies, according to fund manager Richard Kaye. 'Yen is just getting normal' Kaye believes the Yen's appreciation is a return to normalcy rather than an anomaly. "If you look even on Friday in all the bloodbath, domestic names, small cap names [were] actually outperforming," he noted. Indeed, the MSCI Japan Small Cap index has fallen 8.6% since July 11, outperforming the 14.4% decline in the MSCI Japan index on a local currency basis. In U.S. dollar terms, the losses, while proportionate, are smaller, with ETFs such as the iShares MSCI Japan Small-Cap ETF falling by 2.1% compared to the iShares MSCI Japan ETF, which is down 8.9% over the same period.

Persons: Richard Kaye, Kaye, Yen, CNBC's, They've, Warren, sayonara, I've Organizations: Growth, Toyota, Sony, U.S ., Japan ETF, Kobe, U.S, Mitsubishi, Mitsui, Sumitomo Locations: Comgest, Japan

☆ Global market sell-off raises the prospect of an emergency OPEC meeting, analyst says
▼ + stars: | 2024-08-06 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGlobal market sell-off raises the prospect of an emergency OPEC meeting, analyst saysAndy Critchlow, head of news in EMEA for S&P Global Platts, discusses the outlook for oil prices and says OPEC could be forced to hold an emergency meeting if stock market volatility persists.

Persons: Andy Critchlow, P Global Platts Organizations: Email Global, P Global

☆ Harris set to name running mate as global turmoil rocks an already surreal campaign
▼ + stars: | 2024-08-06 | by ( Stephen Collinson | ) edition.cnn.com time to read: +9 min

In the final hours of her search after a compressed vetting period, Harris narrowed in on two candidates — Pennsylvania Gov. Tim Walz, 60, sources told CNN, although Arizona Sen. Mark Kelly remained in the running as of Monday afternoon. But perception is often as important as reality in a presidential race. A critical choiceThe choice of a running mate is the first, most critical decision a party nominee makes. Still, Harris’ strong start appears to have restored the election to a neck-and-neck race, according to recent surveys.

Persons: Kamala Harris, Donald Trump flailing, Harris, Joe Biden’s, Josh Shapiro, Tim Walz, Arizona Sen, Mark Kelly, Shapiro, Walz, Trump, Biden, Harris ’, White, Barack Obama, Republican John McCain, Ismail Haniyeh, Israel’s, Benjamin Netanyahu, Jake Auchincloss, “, CNN’s Kasie Hunt, Harris Trump, Kamala, ”, it’s, Ohio Sen, JD Vance, Sarah Palin, —, don’t Organizations: CNN, Republican, Minnesota Gov, Democratic, Trump, Dow Jones, US, Federal Reserve, Biden, United States ., Israeli, Massachusetts Democrat, Ohio, Democratic National Convention, White Locations: Philadelphia, Arizona, Wisconsin, Michigan, Israel, United States, Iraq, Iran, Tehran, Gaza, Massachusetts, Chicago, Atlanta, Pennsylvania

☆ What the Fed must do to soothe markets after a historic global sell-off, according to JPMorgan strategy chief David Kelly
▼ + stars: | 2024-08-06 | by ( Kelly Cloonan | Jennifer Sor | ) www.businessinsider.com time to read: +4 min

Kelly says the Fed needs to broadcast its confidence in the economy to soothe jittery markets. JPMorgan's David Kelly told Business Insider he sees a possibility for even deeper losses following the big rout. We do stand ready to cut rates as appropriate but we don't think there's a very urgent situation here," Kelly said. More importantly, cutting rates abruptly would potentially instill more fear about the economy among investors, Kelly said. And I don't think the Federal Reserve tells people that, or maybe they don't appreciate it themselves," Kelly said, adding, "It's a drag before it's a stimulus."

Persons: Kelly, JPMorgan's David Kelly, —, David Kelly, Monday's, we've, Dow Jones Organizations: Fed, Service, JPMorgan Asset Management, Nasdaq, Nikkei, Reserve Locations: Japan

☆ Correction in the dollar-yen was overdue and may be 'healthy' for markets, former ECB chief says
▼ + stars: | 2024-08-06 | by ( Jenni Reid | ) www.cnbc.com time to read: +3 min

A carry trade involves an investor borrowing a currency with low interest rates and reinvesting it in higher-yielding assets elsewhere — taking advantage of that differential to make a financial gain. Investors piled into yen carry trades in recent years, attracted by Japan's low volatility and ultra-loose monetary policy. Global stock markets meanwhile plunged as "safe haven" assets such as the Swiss franc and U.S. Treasurys were bolstered. "You can't unwind the biggest carry trade the world has ever seen without breaking a few heads," Kit Juckes, chief foreign exchange strategist at Societe Generale, said in a Monday note. Trichet told CNBC Tuesday: "The correction can be seen as a healthy correction, in some respects.

Persons: it's, Jean, Claude Trichet, CNBC's, Treasurys, Kit Juckes, Trichet Organizations: European Central Bank, ., Bank of Japan, U.S, Global, Swiss, Societe Generale, CNBC, Federal Locations: France's, U.S, Europe, United States

☆ Oil prices climb more than $1 on fear of spreading Middle East conflict
▼ + stars: | 2024-08-06 | by ( ) www.cnbc.com time to read: +2 min

Oil prices climbed more than $1 on Tuesday, paring the previous day's loss as concern that an escalating Middle East conflict could hit supplies outweighed fear of a possible U.S. recession that could hurt demand in the world's biggest oil consumer. Oil's slide was limited by worry that Iranian retaliation for the assassination of a Hamas leader in Tehran may lead to a wider war in the Middle East. "Increased fear of escalating Middle East conflict prompted fresh buying," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities . "The market has largely factored in a retaliatory attack by Iran so the focus is on its scale and Israel's counterattack," Kikukawa said. If the conflict escalates, oil prices will rise, but if it is contained in the short term - as it was in April amid similar escalation fear - gain will be limited, he said.

Persons: paring, Hiroyuki Kikukawa, Kikukawa, Antony Blinken, Masoud Pezeshkian, Vladimir Putin Organizations: Brent, U.S, West Texas, NS, Nissan Securities, State Department, Reuters, OPEC Locations: Fort Stockton , Texas, Tehran, Iran, Israel, U.S, Iraq, Russia, Venezuela

☆ 'Sell the first rate cut': Bank of America's top global strategist warns stocks could be in for trouble as the economy heads toward a hard landing and the Fed gets set to slash rates
▼ + stars: | 2024-08-06 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

In an August 1 note to clients, the bank's top global strategist urged investors to sell stocks when the Federal Reserve issues its first rate cut. Hartnett and his team studied the last 12 rate-cutting cycles going back to 1970 and identified three varieties of rate cuts. Hartnett said surging global central bank rate cuts are signs that the economy is in for a rough stretch. Investors expect the Fed to cut rates for the first time this cycle at its September meeting. "Emergency Fed rate cuts being priced in makes little sense given the economic backdrop in the U.S. and would only serve to destroy policy maker credibility."

Persons: —, America's Michael Hartnett, Hartnett, Louis, Jean, Louis Nakamura, Michael Kantrowitz, Piper Sandler, Kantrowitz, Hartnett's, Jim Smigiel Organizations: Service, America's, Federal Reserve, Business, Bank of America Bank of America, Bank of America, Louis Fed, Bank of America's, Global, SEI Locations: U.S

☆ Biggest concern is the market sell-off becoming a 'self-fulfilling prophecy,' research firm warns
▼ + stars: | 2024-08-06 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +3 min

"Our biggest concern is that the market sell-off becomes a self-fulfilling prophecy causing corporate CEOs to cut back on investments and consumers to pull back on spending leading to further cuts and a recession," the analysts added. "In our view, the direct impact of these steep market declines is limited," they said in a note published Monday. Sustained market declines in the wake of the recent global sell-off could become a "self-fulfilling prophecy" that eventually leads to a recession, Morningstar DBRS analysts warned. The analysts also said that the impact of the market volatility on banks is likely to be limited, even if further market declines materialize, or if the U.S. enters a recession. There was also "no material impact" expected for capital management by banks in Japan, a region that also saw steep declines.

Persons: Morningstar, Nonfarm payrolls Organizations: New York Stock Exchange, Global, Japan's Nikkei, Tech, Federal Reserve, Morningstar, Congressional, U.S, Capital Locations: New York City, U.S, Japan

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