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Is Stagflation Back? US Market Plummets After Services Data; Trump Imposes Chip Tariffs

The US ISM Services Index for August 5th saw a sharp decline to just 50.1, falling below the expected 51.5 and nearing the contraction threshold of 50. This marks the lowest level since the start of the year and triggered a negative reaction in US financial markets. The Nasdaq fell over 2%, while the S&P 500 and Dow Jones both dropped by more than 1%.