Global equity markets have been under pressure in recent sessions amid fears of a potential U.S. recession, triggered by cooling labor market conditions and struggling manufacturing activity. Despite last month’s business surveys showing expansion in services activity, investors remain worried that the world’s largest economy may be slowing down, which could curb U.S. household discretionary spending and reduce corporate profits. Risky assets have been at the epicenter of the current market turmoil, as stocks worldwide experienced heavy declines. Over the past three sessions, Japan’s Nikkei 225 index plummeted by 19.5%, marking its worst three-day drop since the index’s inception in 1950. The Russell 2000 index, which tracks U.S. small-cap stocks, experienced a 10% decline during the same period. The Nasdaq 100, represented by the Invesco QQQ Trust (NASDAQ:QQQ), has seen a 12% drop from its all-time highs in July. The CBOE Volatility Index (VIX), often referred to as the market fear index, surged to briefly hit 60 points on Tuesday, its highest level since March 2020. What Has Happened To Interest Rate Futures? Recession fears, coupled with global equity market turmoil, have sparked wild speculation about Federal Reserve interest rate cuts. A week ago, the market ...