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Stocks slump after report showing sharp drop in U.S. hiring

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How likely is the Federal Reserve to cut interest rates in September?


How likely is the Federal Reserve to cut interest rates in September?

04:14

Fear, long absent in financial markets as investors bet on a soft landing for the U.S. economy, is back in the air on Wall Street.

Stocks opened sharply lower Friday after new government data showed a steep decline in hiring in July, spurring concerns that economic activity is slowing faster than economists expected. 

Shortly after the start of trade, the blue-chip Dow Jones Industrial Average slid 461 points, or 1.1%, to 39,887. The broader S&P 500 sank 1.2%, while the tech-heavy Nasdaq Composite lost 2%, fueled by disappointing quarterly earnings from bellwethers such as Amazon and Intel. 

Market analyst Adam Crisafulli of Vital Knowledge said the weak employment numbers will heighten fears  the economy is losing steam. “This labor report fell short on pretty much every single metric,” he said in a note to investors.

Although stocks have hit record highs this year, propelled in part by excitement over artificial intelligence companies, investors have pulled back in recent weeks. Some analysts think the Federal Reserve has waited too long to lower interest rates, raising the risk of a “hard landing” for the economy or even a recession. 

Economists also said signs that the job market is faltering makes it all but certain that the Fed will lower its benchmark rate in September in a move to ease borrowing costs and keep the economy from stalling. 


Economic growth remains strong despite concerns over inflation

01:49

The central bank could cut by as much as half a percentage point, or even look to dial back rates before its next policy meeting on September 17-18, according to investment advisory firm Capital Economics. 

Despite the downshift in hiring, some analysts noted that the overall economy remains strong, pointing to an ongoing decline in inflation, healthy consumer spending and solid wage growth. 

And while the nation’s unemployment rate has risen to 4.3%, up from 3.7% in January, that is largely because more people are looking for work rather than a spike in layoffs.

“Equities selling off should be seen as a normal reaction, especially considering the high valuations in many pockets of the market,” Lara Castleton, U.S. head of portfolio construction and strategy at Janus Henderson Investors, said of the July job numbers. “It’s a good reminder for investors to focus on the earnings of companies going forward.”



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Sean “Diddy” Combs taken into federal custody in New York

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Sean “Diddy” Combs has been taken into custody by federal authorities in New York, CBS News confirmed Monday night. 

In recent months, the hip-hop mogul has faced multiple accusations of sexual abuse and physical violence. In March, Combs’ homes in Los Angeles and Miami were raided by Homeland Security Investigations agents and other law enforcement officers due to a possible ongoing sex trafficking investigation, U.S. officials said at the time, but no charges were filed then. 

The charges against Combs on Monday were not immediately known. 

“We are disappointed with the decision to pursue what we believe is an unjust prosecution of Mr. Combs by the U.S. Attorney’s Office,” Marc Agnifilo, an attorney for Combs, said in a statement. “Sean ‘Diddy’ Combs is a music icon, self-made entrepreneur, loving family man, and proven philanthropist who has spent the last 30 years building an empire, adoring his children, and working to uplift the Black community. He is an imperfect person but he Is not a criminal. To his credit Mr. Combs has been nothing but cooperative with this investigation and he voluntarily relocated to New York last week in anticipation of these charges. Please reserve your judgment until you have all the facts. These are the acts of an innocent man with nothing to hide, and he looks forward to clearing his name in court.”

Combs has faced a number of lawsuits in recent months involving allegations of sexual misconduct and violence. Combs and his representatives have denied all the accusations. 

In May, Combs apologized for a security video aired by CNN that appeared to show him attacking Cassie, whose legal name is Casandra Ventura, in a Los Angeles hotel hallway in 2016. He said his behavior was “inexcusable” and he takes “full responsibility” for his actions.

This is a developing story and will be updated.

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White House seeks to boost Secret Service funds after 2nd Trump shooting

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White House seeks to boost Secret Service funds after 2nd Trump shooting – CBS News


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The Biden administration is asking Congress to increase Secret Service funding following Sunday’s apparent assassination attempt on former President Donald Trump. This request comes about two weeks before money for the federal government runs out. CBS News congressional correspondent Scott MacFarlane has the latest.

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9/16: The Daily Report with John Dickerson

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9/16: The Daily Report with John Dickerson – CBS News


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John Dickerson reports on the status of the investigation into Sunday’s apparent assassination attempt against former President Trump, TikTok’s appeal as it faces a possible ban in the U.S., and what’s on the campaign agenda with just 50 days to go until the election.

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