The S&P 500 and Nasdaq fell on Wednesday as a growing wave of weak economic data deepened worries that the U.S. economy might tip into recession.
Tesla Inc fell 3.5% while Amazon, Apple, and Microsoft each lost more than 1%.
Driving the recession fears, the ADP National Employment report showed U.S. private employers hired far fewer workers than expected in March. That followed Tuesday’s weak job openings data.
As well, the Institute for Supply Management’s survey showed the services sector slowed more than expected last month on cooling demand, while a measure of prices paid by services businesses fell to a near three-year low.
Earlier this week data showed falling factory orders and soft manufacturing activity.
Wall Street’s recent losses in reaction to signs of a slowing economy mark a change from recent months, when investors cheered weak economic data on the basis that it might mean the Fed’s interest rate hikes were working and that the Fed could ease up on its campaign to rein in decades-high inflation.
“We may have transitioned from the notion that ‘bad news is good news’ to ‘bad new is bad news’,” said Jay Hatfield, chief executive and portfolio manager at InfraCap in New York. “Fear about a recession is the dominant theme.”
MacDailyNews Take: The interest rate hikes shall continue until unemployment rises.
The Fed ludicrously went to a 25-basis point interest rate way too soon. They should have hiked interest rates by 50-basis points in early February and they should do a hike of 50-basis points at its next FOMC Meeting in March (21-23). – MacDailyNews, February 24, 2023
Instead, the ball-less Fed raised the rate another anemic 25-basis points.
Again, when certain quarters, including the Fed, delude themselves and others that “inflation is transitory” and waste at least a year before doing a mere portion of what is necessary* (interest rate hikes), the price will be paid for being delusional and late.
Catching up will be difficult. But, hey, good luck on that soft landing. 🙄 – MacDailyNews, September 13, 2022
In January 2022, Interactive Brokers founder Thomas Peterffy said of the U.S. Federal Reserve, “If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”
The federal funds rate is currently 4.75% to 5.00%..
Peterffy may have been too conservative. Rates in excess of 6% may be required at this point. – MacDailyNews, October 13, 2022
‘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
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???
The S&P 500 barely moved today.
Proven over and over…
Not only Biden can’t count, he is incapable of reading and interpreting economic numbers is the here and now. He keeps bragging about a great economy while nothing could be further from the TRUTH. With record inflation, record gas prices, record illegal border crossing crisis to name three, all under his presidency achieved in less than two years…
D.T. is a shame for humanity… surely not the best way to follow.
Democratic Party is a shame for America… surely a party full of degenerates who will do ANYTHING at all costs to steal elections and remain in power. Today’s Democratic Party are truly a danger to the Republic… followed closely by the media and we will soon have Ben Franklin’s answer!
Democrats are a “shame for humanity” and incapable of personal shame.
I’ll take Trump with all his personality flaws and childish behavior, over a bumbling buffoon with ZERO positive policies that lift up every citizen.
The Trump economy was the best in history, while the Biden economy destroyed prosperity in less than two years…
INFO: The depth of libturd stupidity is staggering.
It was down 2.36 (0.057%) on Wednesday.
All of our “drops” should be that small.
And WTF is wrong with you? Looks like TDS.
https://media.patriots.win/post/LKpdLpYtgFWd.jpeg
What if the overall health of the economy cant be fixed by interest rate hikes alone? Pain meds or antibiotics work great for common health issue but that same medical protocol is mostly useless against metastasized cancer. Just because a treatment plan work once upon a time does not guarantee it’s gonna work for every situation. The problems and challenges with the current economy is something we have never faced before. Debt alone is like toxic obesity and being 31 Trillion “overweight “ is an economic health reality we have never faced before, not to mention the countless other problems we face. I don’t have much faith that our leaders have a clue on how to restore true economic health.
You can not restore true economic health when half of the country is so fucking stupid that they vote for a lying, corrupt, racist, pedophile, dementia patient and a whore
Up yours!
Yet another fucking idiot comes out of the closet and proclaims his stupidity for the world to see
More cognitive dissonance from Hal/Sam/butthurt troll. Everyone with a brain knows what politico was the biggest most corrupt liar & met his current wife through the Epstein sex ring… He just can’t help himself.
https://www.nydailynews.com/news/politics/ny-trump-hooker-stormy-daniels-melania-20201006-lhzosajir5fnvmg67fwo3hyiky-story.html