Stock Market: Grim Day with Economic Recession Fears

The American stock market is dragged down by bearish sentiment due to worse-than-expected employment report, leading to concerns about recession and significant declines in major indices and companies.

### U.S. Stock Market Report: Dismal Employment Data Triggers Recession Fears
* 📉 The S&P 500 fell **1.62%**, the Nasdaq dropped **2.53%**, and the Dow Jones decreased by **1.2%**, with all three indices breaking **key support levels**.
* 🪙 Gold prices rose **1.1% to $2,508 per troy ounce**, while oil prices fell to **$74**, reflecting market sentiment on a **potential recession**.
* 📊 The U.S. unemployment rate rose to **4.3%**, with only **97,000 private sector jobs added**, significantly below the **176,000 expected**.
* 🏦 There is growing speculation that the Federal Reserve may need to **cut rates by 50 basis points in September**, with a **61.5% market expectation**.
* 🍏 Apple's earnings report stood out positively, with **revenue growth of 5%** and **strong guidance**, boosting investor confidence.
* 💵 The dollar-yen exchange rate hit **147.14**, with the yen rapidly strengthening to **oversold levels not seen since 1997**.
* 🏦 Berkshire Hathaway's actions, including Warren Buffett's **continued stock sales** and **cash reserves increase**, are raising concerns in the market.
* 🌐 The U.S. stock market is facing challenges from the **unwinding of the yen carry trade** and **global economic slowdown fears**.

### Market Analysis: Apple and Amazon Face Diverging Fortunes, Intel and Oil Companies Struggle
* 📈 Apple's stock price is recovering due to **positive market sentiment**, with Wall Street analysts maintaining **target prices and buy ratings**.
* 📉 Amazon's stock price is dropping by **11.2%** after disappointing earnings, with concerns about **future revenue forecasts and profit margins**.
* 🖥 Intel's stock price plummeted by **29%** after poor earnings, with significant challenges in **data center and foundry revenue**.
* 🛢 ExxonMobil reported **strong earnings**, with **record-breaking oil production**, while Chevron missed expectations and faced challenges in **refining and overseas sales**.
* 🇨🇳 Intel's heavy reliance on the Chinese market (**28% of sales**) is raising concerns, similar to ASML's recent stock decline due to its **China exposure**.
* 💰 The dollar index dropped by **1.19%** to **93.18**, with the 10-year treasury yield falling to **3.82%** and the 2-year yield dropping to **3.9%**.
* 📉 The VIX volatility index surged to **27, up 48%**, reflecting **increased market anxiety and potential panic**.
* 🏛 Market expectations are shifting towards a more dovish Fed, with predictions of **over 100 basis points in rate cuts by the end of the year**.

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Stock Market Downturn and Economic Recession Concerns

The American stock market is experiencing a significant downturn, with all three major indices dropping and gold prices rising, indicating a growing concern about a possible recession.

The release of the employment report has intensified fears of an economic downturn, with the unemployment rate increasing to 4.

3%, signaling a potential warning sign for the labor market.

Despite some individual stocks performing well, such as Apple and AMD, the overall market sentiment is being impacted by the possibility of a recession, leading to mixed performance in different sectors, such as utilities and bank stocks.

The Current State of the Labor Market and Federal Reserve's Response

Shah's Law suggests a potential trigger due to the average for the past 12 months exceeding 0.

5 percentage points, leading to concerns about the labor market.

The job numbers, with a significant difference from Wall Street's estimate, have caused unease and are being continuously revised down, indicating a weakening labor market.

The Federal Reserve is now facing growing expectations and pressure for a larger rate cut in September, as the market expresses concerns about both growth and the Fed's policy decisions.

Labor Department's Business Survey Estimation Model and Its Impact on the Economy

The Labor Department uses a business survey estimation model based on the number of businesses opening and closing, which tends to overstate the figures for new company hirings, leading to a likely monthly employment increase of below 100,000.

There is a growing concern about the performance of the Federal Reserve, with calculations suggesting the need for a significant interest rate reduction.

The market is facing dissatisfaction and complaints about the Federal Reserve's actions, while the negative macroeconomic conditions are impacting big tech and bank stocks, leading to Warren Buffett increasing his cash reserves.

Berkshire Hathaway's Changing Investments and the Global Financial Situation

Berkshire Hathaway is rapidly selling off its shares in Bank of America, causing unease about its other holdings.

Unexpectedly low employment figures are leading to a rush for cash, with a focus on where the money will be invested.

The rapid strengthening of the yen is causing concerns about the unwinding of the yen carry trade and its impact on the global financial market, especially the U.

The situation is also affecting Japanese companies, particularly in relation to the depreciation of the yen.

Apple's stock is performing well, with a 2% increase in share value, driven by a 10% rise in quarterly net profit and a 14% increase in service revenue.

The company's iPhone sales have declined, particularly in the Chinese market, but iPad sales have exceeded expectations, positively impacting the average selling price.

Despite concerns about AI monetization, Apple's strong device base and potential for everyday AI provision have boosted investor confidence.

The company's warning to Tencent and ByteDance to block payment avoidance methods is expected to significantly increase commission revenue in China, further contributing to the positive outlook for Apple.

Amazon's Struggles and the Impact on the Market

Amazon's stock price has dropped by 12% due to a slowdown in consumer spending and disappointing results in AI investments, cloud services, and advertising revenue.

The company's third-quarter revenue forecast is lower than expected, leading to a negative evaluation by Wall Street and a lowered target price by Goldman Sachs.

The overall market, especially the Nasdaq, is experiencing a significant drop, with the 10-year bond yield declining and the foreign exchange market facing a rapid and alarming decrease.

Intel's stock prices are plummeting, with a significant drop in earnings per share and a projected suspension of dividends.

The company is facing intensified price competition, a decline in crucial data center revenue, and struggles in the foundry industry.

Intel's reliance on the Chinese market has led to investment rating downgrades, and its restructuring efforts are not reassuring investors about its future competitiveness.

The company's current situation raises concerns about its ability to maintain a technological edge amid increasing market challenges.

Mixed Results for Oil Companies in the Current Market

ExxonMobil has shown record-breaking performance in oil production, with a significant increase in revenue and earnings, despite challenges in the refining sector and gasoline sales.

On the other hand, Chevron has struggled to meet earnings expectations, facing declining refining margins, overseas sales, and foreign exchange losses.

The two companies are also in a legal battle over the acquisition of Hess, adding to the complexity of the current market situation for oil giants.

Increasing Market Volatility and Economic Uncertainty

The volatility index has surpassed the 24 mark, indicating a significant increase and making it difficult for individuals to keep up with the trends.

There is a real-time reaction to the employment indicators and the Fed's decisions, with expectations of a substantial basis point decrease and a potential recession.

A wide range of significant indicators and earnings reports are scheduled for the coming days, including GDP updates, Uber, Airbnb, and various company earnings, contributing to the overall economic uncertainty.

The Volatile Market: Dollar Decline, Yield Drop, and Stock Performance

The dollar has risen by 48%, causing concern as the market becomes more tense.

The yield on the two-year treasury has dropped by 25.

9%, while the ten-year yield has also declined to 3.

Big tech stocks like Apple and Amazon, along with other sectors, are showing poor performance, except for NVIDIA.