Today’s sample of Futures Analysis from FuturesHound.com

U.S. equity market plunged sharply lower into the close as disappointing U.S. jobs data as reported by the ADP Corp. encouraged investors to liquidate positions well ahead of Friday’s U.S. jobs data. Investors are now becoming concerned that calls for a gloomy outlook for the economy is going to become a self-fulfilling prophesy.

Consumers aren’t spending and now it appears that businesses aren’t hiring. This is probably one of the worst things that can happen to the Keynesian Theory following Obama stimulation. His plan to revive the economy is to add stimulus in an effort to fuel consumer demand. Increased consumer demand is then expected to encourage business to hire more employees. Once the economy is back on solid footing, the administration will then recover most of the stimulus money through increased taxes.

While the rest of the world is slashing spending, our administration is looking at pushing through more stimuli. Something has to give and I believe that investors have finally awoken to the thought that the deficit is too large and is going to be a problem going forward.

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