August PMI points towards a U.S. slowdown, as the Fed readies for a 25% rate cut in September 18th 2024. NASDAQ plunges over 3%, but still above its month-on-month lows. Overall consumer prices remain sticky. No U.S. recession just yet.

The latest U.S. Purchasing Managers Index does indeed point towards a slowdown or more specifically a recession. Coming in at 47.2 for August from 46.8 (July), setting off a stock market plunge lead by the collapse in "New orders" within the PMI measure.  To theorize on the obvious, we could have been in a stagflation lite economy throughout most of 2023 and first half of 2024.  And this stagnated economy, had already set itself in place, so don't complain about rental prices and the cost of a cup of coffee.  Because, the U.S. is not in recession just yet.  All pending the Federal Reserve who will cut rates at their 18th September meeting, and it looks like a 0.25% cut, according to CME FedWatch with the Futures market pricing in a 62% probability of a modest cut in September.  Which makes sense in a cost changing world thanks to Climate Change and widespread geopolitical issues, one should not rule out embedded inflation that just won't go away.

Please refer to the above chart of the NASDAQ futures, if we see a break below 18680, August 2024 lows of 17240 (price support) is looking likely, any sell off below could capitulate.