Wall Street Shaken as US National Debt Exceeds $58 Trillion
US and European stock markets fell sharply amid growing concerns over America’s soaring national debt and a surge in layoffs. Wall Street is experiencing turmoil, reflecting broader unease about the US economy’s stability.
Significant Job Cuts Intensify Economic Worries
In October, US companies eliminated over 150,000 jobs, the highest for that month in more than 20 years. Layoff tracking firm Challenger, Gray & Christmas reported 153,074 job cuts, a 175% increase from the previous year and 183% rise compared to September. This jump marks the largest October surge since 2003, a year marked by the dot-com bust and extensive layoffs in Silicon Valley.
Investor Concerns and Market Performance
Global investors also express apprehension about upcoming corporate earnings and the potential for another US interest rate reduction. The S&P 500 index dropped by 1.1%, while the Nasdaq Composite, which is heavily weighted toward technology stocks, fell 1.9%.
US stocks had risen steadily through summer and early fall, but recent weeks saw volatility intensified by a government shutdown that limited economic data releases.
“We are in a sense running out of catalysts right now to either support or propel stock prices,” said Sam Stovall of CFRA Research. “The market decided to take whatever profits it can and await additional news that could become encouraging once again.”
Summary
The US stock market's recent struggles reflect deep concerns over debt levels, job losses, and uncertain economic signals, leaving investors cautious and markets unstable.