Local economist on stock market

A significant downturn in global stock markets was triggered by a steep decline in Japan's Nikkei 225 index, which fell 12%, compounded by a disappointing U.S. jobs report revealing a rise in unemployment and slower job creation. This resulted in a 4% drop in the S&P 500 and a 6% decline in the tech-heavy Nasdaq, raising fears of a recession as the Federal Reserve holds off on interest rate cuts. Economists, including Dr. Chris Limnios and Jon Gruber, urge investors not to panic, emphasizing that the market historically rebounds over time. They suggest that the dip could potentially lead to decreased inflation, providing a long-term investment perspective. Additionally, analysts highlight that external factors, including geopolitical tensions and the upcoming U.S. elections, could influence market dynamics. Overall, experts recommend a calm approach and caution against knee-jerk reactions to short-term market fluctuations.