often called the “fear index,” is up nearly 25% over the past month.
While there have been glimmers of hope, including an uptick in early trading on Wednesday, most investor attention remains pinned on the outcome of high-level U.S.-China trade talks this week and an expected interest-rate cut by the Federal Reserve later in the month.
The longer investor nerves remain jangled, the more doubts creep into the market. “This is serious,” wrote Deutsche Bank Chief Economist Torsten Slok after the release of dismal manufacturing numbers earlier in the month. “There is no end in sight to this slowdown, the recession risk is real.”
Technical trader Mark Newton agreed. “Near-term patterns are growing more negative; stabilization is needed sooner than later,” Newton said Wednesday morning.
That might seem to be the signal from other segments of the markets as well. The benchmark 10-year Treasury yield