Markets experienced a sharp downturn, driven by heightened geopolitical tensions and economic uncertainties that negatively impacted investor risk sentiment, just a day after the Federal Open Market Committee (FOMC) meeting signaled a potential interest rate cut in September. U.S. economic data released Thursday revealed a larger-than-expected rise in weekly jobless claims and a more pronounced contraction in manufacturing activity for July. Initial unemployment claims increased to 249,000, up from 235,000 the previous week, marking the highest level in nearly a year. The ISM manufacturing PMI dropped to 46.8% in July, extending its contraction for the fourth consecutive month and reaching its lowest point since December 2023. In geopolitical developments, Israel announced the elimination of Hamas’ military leader Mohammed Deif in a Gaza strike last month. This event followed the assassination of another top Hamas official in Tehran and the killing of Hezbollah’s commander in Beirut. Iranian officials are considering retaliatory measures against Israel, which has vowed to respond to any threats with force. Amid rising risk aversion, Wall Street abruptly reversed prior session gains. The S&P 500 Index declined by about 1% in midday trading in New York, while the Nasdaq 100 fell by 1.5% due to another wave of semiconductor selloffs driven by disappointing corporate earnings reports. The economically-sensitive Russell 2000 index plummeted over 3%, heading for its worst session since April. Safe-haven assets gained traction, with both the U.S. dollar and Treasuries seeing increased demand. ...