Rural Radio Network on Nostr: The US economy has defied recession forecasts for years. Is this time different? ...
The US economy has defied recession forecasts for years. Is this time different?
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A worldwide selloff jolted markets on Monday in the aftermath of a weaker-than-expected U.S. jobs report that elicited fear of an economic recession; Japan’s main Nikkei 225 stock index dropped more than 12%, its worst day of trading since 1987; Each of the major U.S. stock indexes plummeted more than 2%; Nvidia, a chipmaker that had helped catapult market gains so far this year, dropped as much as 14% before recovering some of those losses; Economists who spoke to ABC News disagreed about whether current economic conditions warrant serious concern about a possible recession or foretell resilience of the kind that has followed previous bouts of uncertainty; Some analysts voiced optimism, pointing to continued economic growth and a tendency for markets to overreact in the face of negative news; Others cautioned of a monthslong labor market cooldown that indicates wider economic weakness and a potential downturn; The stock market downswing was set off by a disappointing jobs report on Friday; Employers hired 114,000 workers in July, falling well short of economist expectations of 185,000 jobs; The unemployment rate climbed to 4.3%, the highest level since October 2021; The unemployment rate has soared this year from 3.7% to 4.3%; Some economists have doubted whether the trend signals a recession in this case; The labor market is still growing and the unemployment rate remains at a historically low level; Nancy Lazar, chief global economist at investment firm Piper Sandler, said the uptick in the unemployment rate marks a key piece of evidence indicating a recession will take place before the end of the year; On Sunday, Goldman Sachs economists raised the probability of a U.S. recession in the next year from 15% to 25%; The market downturn has triggered calls for a large interest rate cut at the Fed’s next meeting in September; Economists said an interest rate cut likely would not help the economy avoid an imminent recession, since rate changes typically affect the economy only after a period of several months; Market swings can help bring about a recession anyway.
#UsEconomy #Recession #JobsReport #StockMarket #Economists
https://ruralradio.com/bull/abc_news/the-us-economy-has-defied-recession-forecasts-for-years-is-this-time-different-abcidaa9d5658/
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A worldwide selloff jolted markets on Monday in the aftermath of a weaker-than-expected U.S. jobs report that elicited fear of an economic recession; Japan’s main Nikkei 225 stock index dropped more than 12%, its worst day of trading since 1987; Each of the major U.S. stock indexes plummeted more than 2%; Nvidia, a chipmaker that had helped catapult market gains so far this year, dropped as much as 14% before recovering some of those losses; Economists who spoke to ABC News disagreed about whether current economic conditions warrant serious concern about a possible recession or foretell resilience of the kind that has followed previous bouts of uncertainty; Some analysts voiced optimism, pointing to continued economic growth and a tendency for markets to overreact in the face of negative news; Others cautioned of a monthslong labor market cooldown that indicates wider economic weakness and a potential downturn; The stock market downswing was set off by a disappointing jobs report on Friday; Employers hired 114,000 workers in July, falling well short of economist expectations of 185,000 jobs; The unemployment rate climbed to 4.3%, the highest level since October 2021; The unemployment rate has soared this year from 3.7% to 4.3%; Some economists have doubted whether the trend signals a recession in this case; The labor market is still growing and the unemployment rate remains at a historically low level; Nancy Lazar, chief global economist at investment firm Piper Sandler, said the uptick in the unemployment rate marks a key piece of evidence indicating a recession will take place before the end of the year; On Sunday, Goldman Sachs economists raised the probability of a U.S. recession in the next year from 15% to 25%; The market downturn has triggered calls for a large interest rate cut at the Fed’s next meeting in September; Economists said an interest rate cut likely would not help the economy avoid an imminent recession, since rate changes typically affect the economy only after a period of several months; Market swings can help bring about a recession anyway.
#UsEconomy #Recession #JobsReport #StockMarket #Economists
https://ruralradio.com/bull/abc_news/the-us-economy-has-defied-recession-forecasts-for-years-is-this-time-different-abcidaa9d5658/