The US economy could be on the precipice of triggering a ‘vicious feedback loop,’ Nomura analysts say

• The US economy faces a potential negative feedback loop ahead of Friday’s jobs data release.
• Nomura analysts compared current indicators to the 2000s dot.com crash and subsequent recession.
• Rising unemployment and contractionary ISM manufacturing index signal possible Fed rate cuts.

The US economy is at an important moment ahead of this Friday’s jobs data release, which could trigger a “vicious feedback loop” between the markets and the economy, analysts at Nomura wrote in a note published on Wednesday.