Comprehensive analysis of market oversales in 2024/8

At the beginning of August 2024, the global stock market experienced a significant sell-off due to multiple factors:

1. Weak US employment statistics: Employment statistics for July unexpectedly sluggish employment growth, raising concerns about the health of the labor market.

3. Japan's interest rate hike: The Bank of Japan raised interest rates unexpectedly, which had a negative impact on global markets.

4. Recession Concerns: Concerns about the recession have intensified in the United States due to poor economic data and deterioration in corporate performance.

5. Federal Reserve Policy Concerns: Investors were concerned that the Federal Reserve would be delayed in responding to the economic slowdown.

6. Global market spread: Sales spread globally, and Japan's Nikkei Stock Average recorded the worst decline since 1987.

7. Geopolitical Tension: Increased global conflict, including the Hamas situation in Israel, has heightened market unease.

8. US election cycle: upcoming elections are likely to further increase market volatility.

10. Cryptocurrency decline: Bitcoin's sharp decline suggested risk aversion across the market.

Speculation spread about the possibility that the US Federal Reserve (Fed) would intervene, and some analysts suggested the possibility of interest rate cuts or cancellation of bond cuts. Despite concerns about a recession, some experts argued that while the balance between controlling inflation and maintaining growth is delicate, the US economy is still growing.