In a year of truly historic and unprecedented political occurrences, it has been easy to forget the likelihood of a more conventional upheaval that could affect the outcome of the November election. Such an event may have just occurred, as global stock markets saw a rather unexpected crash on Monday.

Starting with a horrendous jobs report in the U.S. which caused a stock dropoff on Friday, various Asian markets saw massive plummets over the weekend, with the Japanese stock market dropping by at least 6%. This started a chain reaction that included a massive selloff in the U.S. stock market, with the Dow Jones falling by over 1,000 points, in the single biggest dropoff in the stock market since the beginning of the Chinese Coronavirus pandemic.

It is clear now that, despite the Biden-Harris regime’s best efforts to artificially change the definition of a “recession,” the American economy – and indeed, the global economy – has been in an extremely poor state for several years now, to the point that it now can no longer be ignored. And if this is the state of the economy under Biden, just imagine what it would look like if, God forbid, Kamala Harris were to steal the November election.

It wasn’t too long ago that the American economy, from the employment numbers to the stock market, was at an all-time high under Donald Trump’s leadership. We can bring back that level of prosperity for all Americans once again, if we make the right choice in less than 100 days.

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US stocks tumble as part of global market sell-off

By Matthew Kazin

Stocks plunged on Monday as U.S. recession fears caused turmoil throughout the global markets.

The Dow Jones Industrial Average tumbled 1,000 points, while the Nasdaq Composite and S&P 500 also fell by 5% and 3.7%, respectively.

A weak jobs report and shrinking manufacturing activity in the world’s largest economy, coupled with dismal forecasts from the big technology firms, pushed the Nasdaq 100 and Nasdaq Composite into a correction last week.

“While Friday’s employment report was disappointing, it wasn’t the only worrisome economic indicator, only the latest,” said Greg McBride, Bankrate’s chief financial analyst. “Couple economic concerns with the cacophony of earnings disappointments and weak corporate outlooks, global unrest, and currency gyrations, and you have the recipe for sudden volatility.”

The weak jobs data also triggered what is known as the “Sahm Rule,” seen by many as a historically accurate recession indicator.

“The July jobs report is being viewed as a recession warning, and the markets are responding accordingly,” said Bill Adams, chief economist at the Dallas-based Comerica Bank.

With the jobless rate unexpectedly rising, the so-called Sahm rule is now in play. Named after former Federal Reserve economist Claudia Sahm, the rule has successfully predicted every recession since 1970.

It stipulates that the economy is in the early stages of a recession when the three-month moving average of the jobless rate is at least a half-percentage point higher than the 12-month low. Over the past three months, the unemployment rate has averaged 4.13%, which is 0.63 percentage points higher than the 3.5% rate recorded in July 2023, crossing that threshold.

Big Wall Street brokerages also revised their Fed rate projections for 2024 to show greater policy easing by the central bank.

Japanese stocks also fell on Monday, with the Nikkei 225 index closing lower by more than 12% – 4,451.28 points – in its worst day since 1987.

Cryptocurrencies plunged as well, with the price of bitcoin falling 17.5% to $50,239 a coin on Monday morning. The price of ethereum slid 23% to $2,230 apiece.

Read the original article at Fox Business