June 23, 2024

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'Bears' Shoot Wall Street – Black Manta for GDP and Inflation – Newsbomb – News

'Bears' Shoot Wall Street – Black Manta for GDP and Inflation – Newsbomb – News

US GDP rose 1.6 percent in the first quarter, while economists polled by Dow Jones expected GDP growth of 2.4 percent.

Wall Street indexes fell into the deep red, after the latest economic data showed a sharp slowdown in growth and a significant boost in economic growth. Economic inflation.

Industry average Dow Jones loses 600 units, The S&P 500 Global Barometer index fell more than 1.3%, and the Nasdaq Composite also fell more than 1. 1.4%.

gross domestic product United States of America It rose 1.6% in the first quarter, while economists polled by Dow Jones had expected an increase gross domestic product It will be configured in 2.4%.

In addition to the weak growth rate during this quarter, the report showed that consumer prices rose at a rapid pace 3.4%, Much higher than the 1.8% rise in the previous quarter. This has raised concerns and raised questions about whether the Fed will be able to cut interest rates soon.

“In the short term, the numbers don't look like a green light for the bulls either.” “Nor to”Bear“…Uncertainty is unlikely to ease pressures on the market, which is witnessing its biggest decline since last year,” he said. chris larkin, Managing Director of Trading and Investments at Morgan Stanley.

After its announcement gross domestic product, the Analysts They lowered their expectations for an easing of the Federal Reserve's monetary policy. Analysts now expect only one rate cut this year.

Economists noted that the continued decline in US GDP could cause problems for the stock market if inflation continues to stabilize.

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“Today’s economic data is bad on two levels: economic growth is slowing and inflationary pressures persist“, wrote S chris zaccarelli, Chief Investment Officer at the Alliance of Independent Advisors.

“The Fed wants to see inflation start to fall in a sustained way, but the market wants to see economic growth and corporate profits rise, so if neither moves in the right direction, that's bad news. For the markets.”confirmed Zaccarelli.

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