U.S. stocks slide to yearly lows amid U.S. recession concerns

Stocks sank Thursday as investors concerns mounted over a potential U.S. recession and the potential economic costs of the Federal Reserve’s ongoing fight with rampant U.S. inflation.

U.S. stocks slide to yearly lows amid U.S. recession concerns

Emily McCormick for Yahoo Finance:

The S&P 500 fell by more than 3.8% as the index reached its worst intraday level of the year… The Nasdaq Composite plunged as much as 4.6%, bringing the index down as much as 32% this year on an intraday basis. The Dow sank by more than 900 points, or more than 3%, and the 10-year Treasury yield dropped to about 3.34%.

The Federal Open Market Committee’s (FOMC) Summary of Economic Projections (SEP) on Thursday showed the committee itself now sees a less rosy economy ahead as its continues to hike interest rates. The FOMC now anticipates the unemployment rate will come in at 3.7% by the end of this year (versus the 3.5% rate seen in March), and that real gross domestic product will rise just 1.7% (versus the 2.8% increase seen previously). The Fed also raised its forecast for the rate of core inflation at year-end and its expectation for where the Fed funds rate would end 2022.

The lowered growth outlook coupled with a more aggressive path on interest rate hikes ahead appeared to vindicate some pundit’s concerns that the Fed’s window to achieve a “soft landing” had nearly or already passed. Fed Chair Jerome Powell suggested Wednesday that a 50 or 75 basis point interest rate hike seemed most like at the central bank’s next meeting in July.

“The Summary of Economic Projections (SEP) and Chair Powell’s presser highlighted a Committee that sees an increasingly narrow path to a soft landing, while still maintaining that as a baseline,” Matthew Luzzetti, chief U.S. economist at Deutsche Bank, wrote in a note. “The statement removed the reference to maintaining a strong labor market as inflation is brought under control and the SEP anticipates that the unemployment rate will eventually rise…”

MacDailyNews Take: AAPL is now sub-$130, trading currently at $129.86. How low can we go?

Earlier this year, Interactive Brokers founder Thomas Peterffy said, “Inflation is 7% — 1% or 2% [in interest rate hikes] doesn’t mean anything. If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”

‘Tis best to get a handle on inflation, if you know how, while you still can.MacDailyNews, May 11, 2021

Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult.MacDailyNews, May 11, 2022

Inflation is repudiation. — Calvin Coolidge

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

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34 Comments

  1. You’re well-done… uh… watermelon… uh… wha?

    Yes, it seems that U.S. Presidential Elections purchased by Mark Zuckerberg have consequences.

    Some major Carteresque pain is required at first, to teach younger voters a valuable lesson, but, when Democrats are finally, rightfully cast into the wilderness for a decade or more, we’ll be able to enjoy the sequel to the The Reagan Revolution!

    Can’t wait! Making America Great Again starts this November!

    Let’s go, Brandon!

    1. The program to curb inflation was done at the end of the Carter administration by Carter and his Fed Reserve chief and Reagan just inherited the credit for it’s result. Look up your history!

      That’s because Carter did what needed to done despite him knowing it would hurt his chances of being re-elected. Reagan reaped the result of what Carter sowed.

      Very unlike the current Republican party which wears a flag but is willing to support a coup to win the presidency. Not all Republicans, way to go Pence, but in this last primary 100 out of 150 Republican candidates running for office at all levels still claim election fraud supporting the big lie. Democrats cast in the wilderness? Maybe some Republicans need to go in the wildnerness and create the fascist the dictatorship of their dreams.

      1. “willing to support a coup to win the presidency”

        NO! A few crazies, less than a thousandth of a percent, may feel that way, big deal. Dishonest to attempt to paint the entire Republican Party with a false brush. The whack jobs in the Democrat Party far outnumber them by millions and in 2020 for months burnt Blue cities and looted causing billions of dollars in damage.

        No one on Jan. 6 burnt the Capitol to the ground or walked out with widescreen TVs…

        1. “Dishonest to attempt to paint the entire Republican Party with a false brush.” then goes on in the very next sentence to do the same to the Democratic party but what else can one expect from GeoB.

          “No one on Jan. 6 burnt the Capitol to the ground or walked out with widescreen TVs…”

          No, they only caused the deaths of seven people but let’s play the false equivalency card.

          1. Attempted treason (which we now know included direct murder threats to VP Pence) is a punishable felony. The fact that most of the protestors were incompetent buffoons doesn’t change this.

            Thank goodness Pence and Congress followed the law instead of the illegal demands of the former POTUS or the treasonous mob. If the rule of law is ignored by strongmen and violent sore losers, then the USA ceases to be a democracy (or democratic republic, if you want to be picky).

            None of this has anything to do with Mac News.

          2. Seven people died because of an out of control mob? Are all seven PROVEN Trump supporters and have they been brought to justice? What are their names, please. I only know of one person shot inside the Capitol by a guard. You hear anything about that one? No, code of silence that would make the Democrats uncomfortable and culpable on Jan 6. They and the media just can’t have that…

      1. The Humdrum Loon baa-aaa-aaah’s again, he’s the sheep Biden keeps mounting, Biden is an old ram, all he can still barely do is ram it in and his minders ram it into him in kind.

        1. Well, here’s the thing. All of the courts in your country have said that the election was not stolen, even the conservative leaning ones. There’s no evidence at all of any widespread fraud.

          But seeding the idea of fraud and that things are rigged against him is what Trump does. He did it in the election he won against Hilary and before in the primaries.

          But he’s still taking donations to continue the fight.

          What is happening in the US by Republican politicians is a move towards pushing far right religious polices on everyone and restricting voting rights all while shouting about “Freedom!”. The fact that people such as yourself don’t actually see that, or perhaps even more troubling, don’t care is a real cause for concern. Democracy is in grave danger. That is the true “baa-aaa-aaah” here.

            1. Black women for Trump. That’s an oxymoron if I ever heard one. Someone of colour supporting a proven racist and misogynist. Wow.

      1. I’ll explain it to you one more time for your thick skull.

        Every election has fraudulent voting! Dead people voting, illegals voting, people voting several times and votes counted that violated state election guidelines. Example: Improperly cast incomplete votes just approved days ago by the courts for counting in Pennsylvania. Hey, with so much voting fraud these days, why not.

        Trump has a deep gut feeling the election was stolen and thousands, if not millions, people agree and hold the same opinion. He expresses that gut feeling and the detractors call it a lie, whatever.

        Democrats outworked Republicans and got away with widespread FRAUD. But for lack of evidence due to incalculable numbers, the media looking the other way and not assigning their Pulitzer Prize reporters to investigate – we will NEVER KNOW if the fraudulent numbers were great enough to overturn the election.

        BTW, new chief of CNN banned the phrase “the Big Lie,” but obviously you would not know that…

        1. My goodness, deep gut feelings!!!!!! GoeB is enamored with a narcissist that operates on FEELINGS, while pointedly rejecting the results of dozens of court cases that his idol lost.

          That tells you all you need to know.

          Sadly GoeB and the three other trolls on this site spreading FUD for a loser ex prez are accompanied by the 10-20% of the population that failed basic logic in elementary school.

            1. When the trumpet trolls have nothing to support their extreme opinions, they always lash out with ad hominem. This only continues to prove how stupid the troll network supported by this site is. Pathetic.

          1. @ Very Amusing

            “rejecting the results of dozens of court cases that his idol lost.”

            Yes, Trump is certainly my idol the greatest economic recovery president of ALL time!

            Narcissist, so what? I’ll take it any day over clueless.

            99% of court cases were NOT HEARD and NEVER made it to trail, brainless.

            Trump’s policies compared to SLOW JOE Biden grew the economy in record territory, not WRECKED it leading to 40-year high inflation and record gas prices, to name two, with the worst to come. How politically ill-informed and dense can you be?

            “Sadly GoeB and the three other trolls on this site spreading FUD for a loser ex prez are accompanied by the 10-20% of the population that failed basic logic in elementary school.”

            Sadly, the intellectually challenged knows NOTHING of my academic record or anything else for that matter. I do not find you amusing, just plain stupid…

        2. The only thick skull here is yours. Well, and a couple others. Your courts have all sided with the election results, even conservative leaning ones. You’re being led by Trump and his conspiracies. Actually no, sorry, I take that back. I’m wrong. You’re following because it’s the outcome you wanted. People like you cry “Freedom!” but only for you and the agenda you believe in.

          I bet you’re against gay marriage right? Why? How does it hurt you when gay people only want what you have?

            1. First again: why the need to misrepresent your identity politics? Are you that desperate?

              Get a life.

            2. Trump hasn’t been right about hardly anything in the last 6 years. Not that you would be prudent enough to “trust but verify” what lying Don says.

    2. Firstfuck cannot comprehend the difference between the constitutionally elected chief executive of the US and a worldwide marketplace. But this site proudly promotes his stupidity first and foremost on every story, regardless of the fact he never discusses Mac news.

      1. How does a MakeAmericaGreatAgain advocate now pivot to a position resisting infrastructure investment? Maggots are confusing. They like tweets but they just can’t support domestic jobs if it costs them a dime.

        Then they whine about the price of mideast oil they pour into their imported pickups.

        Americans: too cheap to have good infrastructure, too proud to live within their means.

  2. AAPL is now sub-$130, trading currently at $129.86. How low can we go?

    Below 100. Once consumer spending new phone purchase we will go low.Good news for AAPL share holders is that even though AAPL will drop the rest of the market will drop more. So buy on the way to the bottom and wait for 2024

    1. Babysitter time waster apps are as essential to ‘Merican consumers as imported Columbian coffee and Saudi dinosaur juice. The difference is that there is still some competition in other commodity markets whereas there’s only one one game in town for apps. Until Congress grows a pair and applies reasonable antitrust legislation to enable competition, Timmy will continue to print money and this site’s paid trolls will complain about it while hypocritically hyping the stock and politicizing all downward market movements as if it was under one person’s direct control.

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