On Wednesday, US stocks saw a small gain as markets digested remarks from a gathering of central bankers and evaluated the likelihood that the economy would avoid entering a recession.
Investors were watching Jerome Powell’s remarks at the European Central Bank forum as he addressed the state of the economy and the possibility of a recession. Powell is the chairman of the Federal Reserve.
The head of the US central bank reportedly said that, despite the difficulty, he was optimistic that the economy could be guided toward a smooth landing.
Following an initial print showing a 1.5 per cent decline, the Commerce Department updated its assessment of first-quarter GDP downward to reflect a 1.6 per cent contraction.
US indexes were in the following positions when the market began on Wednesday at 9:30 a.m.:
3,825.34 up 0.1 per cent on the S&P 500.
31,033.47, an increase of 0.28 per cent for the Dow Jones Industrial Average (86.48 points)
11,172.08, a decrease of 0.13 per cent for the Nasdaq Composite.
Leading economist Mohamed El-Erian said that investors should be concerned about a US recession as consumer and business confidence are declining and the possibility of a policy error by the Federal Reserve is increasing.
The S&P 500 will drop another 10% before bottoming out, according to the head of investments at Morgan Stanley Wealth Management, who also claimed that the prospects of a recession had increased due to the Fed’s faster rate hikes.
According to Scott Minerd of Guggenheim, the Fed is primarily concerned with managing inflation, therefore it won’t be concerned about stock prices falling until fear overwhelms the markets.
The S&P 500 is up 0.1 per cent to 3,825.34.
The Dow Jones Industrial Average increased by 0.28 per cent to 31,033.47. (86.48 points)
the Nasdaq Composite fell by 0.13 per cent to 11,172.08
According to renowned economist Mohamed El-Erian, investors should be worried about a US recession as a consumer and corporate confidence are falling and the likelihood of a Federal Reserve policy misstep is rising.
The head of investments at Morgan Stanley Wealth Management predicted that the S&P 500 would decline by another 10% before bottoming out. He also asserted that the likelihood of a recession had increased as a result of the Fed’s more rapid rate hikes.
Scott Minerd of Guggenheim claims that because the Fed’s main focus is on controlling inflation, it won’t be concerned about stock price declines until fear grips the markets.
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The price of oil increased, with Brent crude, the global standard, rising 1.31 per cent to $119.53 per barrel and West Texas Intermediate crude rising 1.42 per cent to $113.35 per barrel.
An ounce of gold increased by 0.66 per cent to $1.833.30. A 4.7 basis point decrease brought the 10-year yield to 3.16 per cent.
At $19,993, bitcoin was down 1.32 per cent.
Investors should be concerned about a US recession, says famous economist Mohamed El-Erian, since consumer and corporate confidence are declining and the possibility of a Federal Reserve policy blunder is increasing.
The S&P 500 would drop another 10% before bottoming out, according to the head of investing at Morgan Stanley Wealth Management.
