The U.S. Federal Reserve’s steady rise in interest rates has pulled inflation down to 3 percent in June, close to the central bank’s 2-percent target rate—but the economy may pay a price in a rising number of bad corporate loans.
Tag: U.S. Economy
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STOCK MARKETS SEND MIXED SIGNALS ABOUT THEIR FUTURE
In June, the Standard & Poor’s 500 index ended its longest bear market since the 1940s, The Wall Street Journal noted, and has leaped up 28 percent since then, ending 26 July at its highest close since April 2022.
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ECONOMIC UPDATE – MARKET OVERVIEW
The global economic slowdown has begun. The facts are in the figures. Leading the downtrend is China, the world’s #2 economy, whose leaders caused the socioeconomic decay when they launched the COVID War during their Lunar New Year in January 2020, “The Year of the Rat.” After imposing draconian zero-COVID policies for some three years, they have destroyed the lives and livelihoods of hundreds of millions across the nation.
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JPMORGAN BECOMES A GOLD BUG
With a recession still likely, gold’s price will break through $2,000 later this year and set new records in 2024 as the U.S. Federal Reserve begins cutting interest rates in next year’s second quarter, analysts at megabank JPMorgan Chase predicted.
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WAR SENDS LOCKHEED PROFITS SOARING
Lockheed Martin, the world’s largest defense contractor, reported second-quarter net profits of $1.68 billion, compared to just $309 million for the same period last year and exceeding predictions among economists surveyed by FactSet.
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SALES OF NEWLY BUILT HOMES ON THE RISE
Newly built homes made up almost a third of houses for sale in the U.S. in May, compared to the usual 10 to 20 percent, according to the National Association of Realtors (NAR).
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CONSUMERS WAITING “FOR THE OTHER SHOE TO DROP”
Two key surveys of consumers’ views of the economy both posted their most positive results in 18 months or more.
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CHINA’S ECONOMIC WEAKNESS LEAKS ONTO WALL STREET
Stock-watchers expect a raft of disappointing second-quarter earnings reports from tech firms, luxury retailers, and other companies dependent on China, according to Reuters.
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DOLLAR’S VALUE SINKS FURTHER AS BIG BANKS TURN BEARISH
After closing at 99.91 on 17 July, the U.S. dollar regained little ground against an assortment of other major currencies, trading at 101.08 at 5 p.m. U.S. EDT on 21 July.
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ECONOMIC UPDATE – MARKET OVERVIEW
At this point in the stock market game, it’s all about interest rates.
In the U.S., the bet on The Street is that following the Fed’s meeting on Wednesday, there is a 98-percent probability that the central bank will raise interest rates 25-basis points, according to the CME FedWatch Tool.