2024-04-25 15:41:53
Slow growth and soaring inflation are disrupting the U.S. economy, and Wall Street stocks are falling sharply.
U.S. economic growth fell to its lowest level in nearly two years in the first quarter of this year, while inflation rose to uncomfortable levels, halting a wave of strong demand and weak price pressures that fueled optimism regarding a soft landing. According to a report reported Thursday by Bloomberg, initial government estimates showed that… Gross domestic product It grew at an annual rate of 1.6%, which is lower than all economists expected. Personal spending, considered the main driver of growth in the U.S. economy, grew at a slower-than-expected pace of 2.5%, while… trade deficit Largest means deducting the largest amount of growth since 2022.
The Bureau of Economic Analysis report released today showed that the closely watched measure of core inflation rose 3.7%, more than expected, in the first quarterly acceleration in a year complete. According to Bloomberg, these figures represent a notable loss of momentum at the start of 2024, following the economy finished a strong year in what analysts called a “surprising” way.
And with High inflationFederal Reserve policymakers, already expected to keep interest rates at their highest level in two decades when they meet next week, might face new pressure to delay further any reduction, and even wondering if the costs… The borrowings are high enough. . Treasuries fell and the Standard & Poor’s 500 index opened lower Thursday, as traders delayed the expected timing of the Federal Reserve’s first interest rate cut until later this year.
Wall Street’s main indexes opened sharply lower today, hurt by the performance of shares of fast-growing companies following dismal quarterly results from meta-platforms, while signs of a Continued inflation has dampened hopes that the Federal Reserve will lower interest rates. Soon. . In detail, the Dow Jones Industrial Average fell 408.83 points, or 1.06%, at the opening to 38,052.09 points. The Standard & Poor’s 500 Index fell 51.75 points, or 1.02%, to 5,019.88 points, and the Nasdaq Composite Index fell 337.49 points, or 2.15%, to 15 375.26 points at the opening bell.
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