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<ul class="summary-list"><li>July's jobs report fell well short of expectations, prompting recession fears and a stock market sell-off.</li><li>Some have called for emergency interest rate cuts this week as a result.</li></ul>The US <a target="_blank" class="" href="https://www.businessinsider.com/markets-japan-rate-hike-yen-fx-carry-trade-stock-futures-2024-8">stock market</a> is plummeting. Investors are panicking, and they're calling for the nation's central bank to <a target="_blank" class="" href="https://www.businessinsider.com/fed-rate-cuts-recession-outlook-economy-job-market-interest-rates-2024-8">cut interest rates</a> over a month before the Fed's next meeting.Doing so would align today's economy with that of a pandemic and major terrorist events.On Friday, the Bureau of Labor Statistics released <a target="_blank" class="" href="https://www.businessinsider.com/unemployment-rate-job-growth-july-labor-market-economic-data-2024-7">July's jobs report</a>, which found that the unemployment rate rose to 4.3%, the highest reading in nearly three years. Job growth fell well short of expectations and <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-selloff-today-jobs-report-recession-unemployment-tech-earnings-2024-8?_gl=1*g3mnly*_ga*MTAyOTY4OTk4NC4xNzE0NDgyOTcz*_ga_E21CV80ZCZ*MTcyMjg2NzI3MC4yNTUuMS4xNzIyODY5OTQwLjU4LjAuMA..">sent stocks plunging</a> — with many pointing their fingers at the Federal Reserve for waiting too long to cut interest rates after <a target="_blank" class="" href="https://www.businessinsider.com/interest-rate-cuts-likely-september-federal-reserve-holds-steady-july-2024-7">holding steady</a> at its meeting last week.The fallout from the jobs report has continued over the past few days. The US stock market tanked on Monday, <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/nasdaq-crash-tech-recession-global-stock-market-rout-accelerates-japan-2024-8">with the Nasdaq and Dow Jones indices plunging</a>. Japan's main stock market index was <a target="_blank" class="" href="https://www.businessinsider.com/markets-japan-rate-hike-yen-fx-carry-trade-stock-futures-2024-8">down 12.4% </a>on Monday in response to both the US jobs report and Japan's latest interest-rate hike.The global panic has prompted some economists to call for the Federal Reserve to implement an emergency interest rate cut this week; Bloomberg <a target="_blank" class="" href="https://www.bnnbloomberg.ca/investing/2024/08/04/bond-traders-bet-big-on-the-fed-launching-into-rescue-mode/">reported</a> that traders were predicting a 60% chance of a rate cut within the next week. The Federal Open Market Committee is not expected to meet again until September 18, during which it's expected to cut interest rates after holding them steady for nearly a year.Wharton professor Jeremy Siegel <a target="_blank" class="" href="https://www.cnbc.com/2024/08/05/whartons-jeremy-siegel-says-fed-needs-to-make-an-emergency-rate-cut.html">told</a> CNBC on Monday that the Fed should make an emergency 75 basis-point cut this week and that there should be "another 75 basis point cut indicated for next month at the September meeting — and that's minimum.""How much have we moved the fed funds rate? Zero," Siegel said. "That makes absolutely no sense whatsoever."The Fed has not given any indication as to whether it will cut interest rates this week, but it's only done an emergency cut in extreme situations in the past — and it doesn't look like the US economy is quite there yet. However, with concerns that the Fed is <a target="_blank" class="" href="https://www.businessinsider.com/jobs-unemployment-interest-rates-economy-recession-soft-landing-2024-8">no longer able to achieve its soft landing</a> and avoid a recession, calls for relief will likely grow.<h2 id="36aa2446-dc65-482b-bd7d-7a46586b2aae">The history of emergency rate cuts</h2>Emergency interest rate cuts are extremely rare, and the Fed has done so sparingly in the past. There were a <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/emergency-rate-cuts-events-caused-past-fed-coronavirus-timeline-when-2020-3-1028964493#6-january-2001-tech-bubble-6">series of off-cycle interest rate cuts</a> in 2001 following the dot-com bust and later the September 11 terrorist attack, both of which crashed the stock market."In the past, the Federal Open Market Committee (FOMC) has responded to weaker economic conditions, which are often associated with downward pressure on the price level, with a lower federal funds target," the St. Louis Fed said of the 9/11 attacks in a January 2002 <a target="_blank" class="" href="https://www.stlouisfed.org/publications/regional-economist/january-2002/the-federal-reserves-response-to-the-sept-11-attacks">note</a>. "The present case has been no exception; the FOMC reduced the federal funds rate target four times in the three months following the attacks."Later in 2008, the Fed implemented emergency rate cuts following the housing market crash, and most recently <a target="_blank" class="" href="https://www.businessinsider.com/fed-interest-rate-cut-zero-bond-holdings-coronavirus-pandemic-economy-2020-3">cut rates off-cycle in March 2020</a> in response to the beginning of the COVID-19 pandemic.Still, among calls to cut rates this week, some experts are urging against an overreaction. Jim Smigiel, chief investment officer and financial services company SEI, said in a statement that "emergency Fed rate cuts being priced in makes little sense given the economic backdrop in the U.S. and would only serve to destroy policy maker credibility."If the Fed doesn't cut rates this week, there will likely be increased pressure on the central bank in September to cut rates more aggressively. Powell <a target="_blank" class="" href="https://www.businessinsider.com/interest-rate-cuts-likely-september-federal-reserve-holds-steady-july-2024-7">said during a press conference last week</a> that any decision will be made solely based on data, and he "can imagine a scenario in which there would be everywhere from zero cuts to several cuts, depending on the way the economy evolves."

Cries are getting louder for emergency interest-rate cuts this week, something that's been reserved for pandemics or terrorist attacks

<ul class="summary-list"><li>The US is looking to buy 3 million barrels of oil for March 2024 to replenish the Strategic Petroleum Reserve.</li><li>The government is working to refill the emergency stockpile while oil prices are low.</li></ul>The US issued a new solicitation to purchase up to 3 million barrels of oil for March, in an effort to keep replenishing the Strategic Petroleum Reserve. SPR levels continue to stand near 40-year lows, currently holding 352 million barrels of oil. The emergency stockpile was <a href="https://markets.businessinsider.com/news/commodities/oil-prices-strategic-petroleum-reserve-joe-biden-inflation-fed-rates-2023-9?utm_medium=ingest&amp;utm_source=markets">tapped at historic rates by the Biden administration last year</a> to stabilize oil prices after Russia's invasion of Ukraine. The US has been refilling the reserves, especially as crude prices have fallen sharply in recent months. The Energy Department's plan is to purchase oil at $79 a barrel or below, which it calls a "good deal for taxpayers," the <a href="https://www.energy.gov/ceser/articles/us-department-energy-announces-solicitation-purchase-oil-strategic-petroleum-0" target="_blank" rel="noopener">solicitation announcement</a> said.On Friday, West Texas Intermediate crude rose 2.7% to $71.19 per barrel. That comes as OPEC+ has struggled to <a href="https://markets.businessinsider.com/news/commodities/oil-outlook-saudi-arabia-asia-price-cuts-us-crude-exports-2023-12">prop up global oil prices</a>, as US output has remained strong. The Energy Department has already purchased around 9 million barrels at an average of $75, while securing almost 4 million barrels in accelerated exchange returns, it said.Through at least May 2024, the government will also continuing issue further solicitation at a monthly pace. The latest solicitation comes as there is a <a href="https://markets.businessinsider.com/news/commodities/oil-prices-us-spr-refills-emergency-reserve-crude-production-barrels-2023-12">physical limit</a> in how much oil the SPR can take a time, Deputy Energy Secretary David Turk told Bloomberg TV this week. "So we will be doing at least 3 million barrels, and we hope we can bring more capacity online at these price levels to buy as much as we can to refill to make sure we've got that available when we need it in the future," he said.

Here's how much oil the US is buying to refill the depleted emergency reserve

<ul class="summary-list"><li>Emerging markets' stocks climbed to their highest since April 2022 on Tuesday.</li></ul>China's latest efforts to prop up its sluggish economy appears to be having spillover effects on markets around the world. Emerging markets indexes climbed to their highest level since April 2022. The MSCI equity index for emerging economies rose 2% on Tuesday, fueled by gains from Hong Kong-listed shares of Chinese companies like Tencent Holdings Ltd. and Alibaba Group Holding Ltd.The boost comes shortly after China introduced a <a target="_blank" href="https://www.businessinsider.com/china-economy-aggressive-monetary-stimulus-interest-rate-rrr-2024-9">swath of new stimulus measures</a> to prop up its sluggish economy and boost domestic demand.The policies include cutting a key short-term interest rate, lowering the reserve requirement ratio that dictates the amount of capital banks must hold, and introducing 800 billion Chinese yuan in liquidity support.The new stimulus measures also boosted China's CSI 300 of Shanghai- and Shenzhen-listed shares, with the index closing 4.3% higher on Tuesday in its best day in four years.And the Stoxx Europe 600 index climbed as much as 0.9%, led by luxury stocks amid hopes that sluggish Chinese consumer spending will rebound.The Chinese stimulus measures—plus a big rate cut from the US Federal Reserve last week and expectations for further easing—are raising investor confidence in the world's two largest economies.Yet, some analysts remain wary that China's stimulus measures won't have drastic enough impacts to actually rescue the country from its <a target="_blank" href="https://www.businessinsider.com/china-economy-growth-consumer-spending-demand-real-estate-debt-crisis-2024-8">economic woes</a>."Today's announcement is not a game changer," Yingrui Wang, an economist at AXA Investment Managers, said in a Tuesday note. "A coordinated fiscal policy in the near term will be important and necessary for an efficient transmission."Goldman Sachs analysts echoed that sentiment, and said that the government's policy rate and lower reserve requirement, plus rare guidance on future policy, all point to signs that policymakers are increasingly worried about growth headwinds.But the analysts say further support for domestic demand is still necessary."More demand-side easing measures — especially fiscal easing — are likely to be needed to improve China's growth outlook," the analysts said in a Tuesday note.In recent months, China's economy has struggled to escape <a target="_blank" href="https://www.businessinsider.com/pets-sports-disney-linabell-china-consumer-economy-demand-spending-property-2024-9">weak consumer sentiment</a> and continues to face a <a target="_blank" href="https://www.businessinsider.com/china-economy-housing-market-real-estate-crash-investors-outlook-construction-2024-3">struggling property sector</a>. Analysts have said the government's target of "around 5%" GDP growth by the end of the year is <a target="_blank" href="https://www.businessinsider.com/china-growth-targets-axa-investment-property-sector-industrial-production-2024-9">increasingly unlikely</a> as the government's macro policy has <a target="_blank" href="https://www.businessinsider.com/china-economy-gdp-macro-policy-retail-demand-labor-market-forecast-2024-9">moved too slowly</a> to spark a rebound.

China's latest stimulus boosts emerging-market stocks to the highest level in 2 years 

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Cries are getting louder for emergency interest-rate cuts this week, something that's been reserved for pandemics or terrorist attacks

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Here's how much oil the US is buying to refill the depleted emergency reserve

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China's latest stimulus boosts emerging-market stocks to the highest level in 2 years

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