Wall Street hits shocking summer sell-off, as recession fears start to soar again

Wall Street hits shocking summer sell-off, as recession fears start to soar again

Susan Tompor | Detroit Free Press | August 5th, 2024

For many everyday investors, the latest shock for stocks might seem out of the blue this summer. Most of the dramatic headlines, after all, have focused on the presidential election. President Joe Biden dropping out of the race on July 21. Former President Donald Trump surviving an assassination attempt on July 13. Stocks seemed to be chugging along.

“We get lulled into false sense of security and then the true stock market rears its head,” said Sam Huszczo, a chartered financial analyst in Southfield.

We are dealing with negative economic reports, such as the July report on jobs. “But nothing dramatic enough to justify this reaction,” Huszczo said.

“Despite the potential of the beginnings of an economic recession,” he said, “the outlook for corporate earnings growth remains optimistic and earnings are the biggest factor in how stocks perform over time.”

Right now, he said, he wouldn’t recommend trying to predict market tops and bottoms.

Summer’s fun on Wall Street, though, clearly came to an abrupt end a month before Labor Day.