On the thin line again: inflation and recession fears

August 4, 2024 Update

Two weeks ago, I wrote, “Right now, the backdrop remains positive for stocks unless really bad economic data starts to show up.”

The market was spooked by last week’s unemployment data, which was seen as higher than expected, driving a strong sell-off in stocks.

See below how unemployment moved to 4.3% vs. 4.1% expected.

The FED is expected to start cuttin…