‘Slowdown That Points to Recession’: Fox’s Stuart Varney Breaks Down What’s Causing Major Market Drop

Fox Business host Stuart Varney offered a deep dive into the various factors behind Monday’s stock market sell-off and warned of a looming recession.

Varney first noted that the Monday morning tumble in the markets had seemed to be helped by an improved forecast in the service sector.

“Okay. All right. So that improving service sector has had an improvement effect on the market. Briefly, but it’s there. All right folks. Now this,” Varney noted before offering his analysis:

It is a market selloff. And here’s what’s behind it. First an economic slowdown that points to recession. The housing market is in deep trouble. The consumer looks to be tapped out. Friday’s very weak jobs report convinced investors that the slowdown is real.

You know, it didn’t help when Warren Buffett revealed he’d sold about half his stake in Apple and that he’d been a net seller of stocks for several quarters. It sends a signal when an investor of his stature cuts his stock holdings. Do you know he now has $277 billion in cash?

War talk is also a factor in the selloff. Iran is considering a direct attack on Israel, its retaliation for the killing of a Hamas leader in Tehran last week. A wave of rocket attacks is expected. Mayors in Israeli towns have been warned about power and water outages. In Tel Aviv, an underground bunker has been publicly revealed for the first time. It is ominous. And then there’s politics and the election.

“If we’re heading to recession, Wall Street doesn’t want to hear about tax hikes on corporations or the repeal of Trump’s tax cuts. So here we are in white-knuckle territory. The Federal Reserve is being hammered for not cutting rates, AI looks like a bubble that’s bursting. And the 162 million Americans who have a stake in the stock market are looking at a cut in their net worth. So when does the selling stock stop? Brian Brenberg, with us this morning. Is it time for an emergency rate cut from the Federal Reserve?” Varney then asked Brenberg – co-host of The Big Money Show.

Brenberg argued that the Fed would cause more market uncertainty with an emergency rate cut as it vowed only days ago not to do so.

Watch the clip above via Fox Business.