Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Ivana Hampton. A chain reaction in the markets rippled around the world. Did you look at your portfolio this week? I don't blame you if you

didn't. August has gotten off to a rocky start, and this week's investing insights features

three Morningstar specialists who cover the markets and the economy. You'll hear about what

calls the market madness, why it's a good time to diversify beyond the

magnificent seven stocks, and why the Fed should not panic. Let's begin with my conversation

with Morningstar Inc.'s markets reporter Sarah Hanson. Global markets are rebounding following a wild

swing, a sharp sell-off closed-out trading on

Monday, August 5th. Just a few weeks ago, stocks were at new highs, but a worldwide wipeout

knockback gains for popular trades and big tech. Morningstar Inc. Markets reporter Sarah Hanson

has investigated the turmoil. Thanks for being here, Sarah.

Thanks so much for having me. Well, let's get into it. The stock market has stabilized after a couple of bad days,

especially Monday. What happened out there? So you're right. Yesterday, Monday was a wild day

in the markets, and it wasn't just one thing

that triggered all those losses. A big part of the story this time around has to do with the

economy, interest rates, and the Federal Reserve. So last week on Friday, we saw a weaker than

expected June jobs report. We saw the unemployment rate rise to 4.3 percent, and we saw a weaker than expected June jobs report.

We saw the unemployment rate rise to 4.3% and we saw a lot fewer jobs added compared

to what economists were expecting.

That report started to fuel worries among investors that the Fed has actually left interest

rates too high for too long in its fight against inflation and has

in doing so damaged the labor market, which would leave the door open for a recession.

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