First half of the worst market since 1970
Nicole Goodkind of CNN business
Well, we have reached the half-year mark (already know) and here we are standing.
S&P 500 is in the bear market, down 20% annually. If you close there, it will be the worst in the first half of 52 years.
However, this is not necessarily terrible news for stocks. The previous year, which decreased by at least 15% in the middle of the year, improved as the year progressed. During the last six months of these years, stock prices have risen each time, with average returns close to 24%.
Major inflation indicators are expected to indicate that prices will continue to skyrocket
From CNN Business'David Goldman
The Consumer Expenditure Price Index (PCE) has risen 0.7% in the past month from 0.2% in May. It is expected to rise. That's not the direction we want, and it's bad news for the Fed's favorite inflation index.
Prices have risen around the world, despite central bank actions to raise interest rates to curb inflation. So-called core inflation has subsided, but it doesn't make much sense for consumers who still have to pay volatile food and energy prices that "core" inflation discounts.
Continued rises in prices can undermine political leaders around the world and put the global economy in recession. Covid's continued expansion, labor shortages, supply chain disruptions, energy crises, and Russia's ongoing invasion of Ukraine all contribute to rising prices and should be stopped by a single policymaker. You can not.
Fall of stock futures
From David Goldman on CNN business
Due to continued Wall Street volatility, US equity futures fell again on Thursday prior to another major inflation report. Stocks are set to end the worst start in the first half of the year since 1970.
DowFutures fell 400 points or 1.3%.
S&P 500Futures fell 1.3%.
NasdaqFutures were 1.8% lower.
A pandemic may have changed the economy forever, Federal Reserve Chairman Jerome Powell said. 72}
CNN Business Lucy Bailey
It's not yet clear if the US economy will return to its pre-pandemic state. Federal Reserve Chairman Jerome Powell said Wednesday at the Central Bank Forum in Portugal.
"The economy is driven by very different forces. What we don't know is whether we look the same or look a bit like before," Powell said. He told a panel that included European Central Bank Governor Christine Lagarde and Bank of England Governor Andrew Bailey.
Central bank leaders, who hold a total of about $ 20 trillion in their balance sheets, discussed how the "new power" has changed Inflation dynamics and the state of the world economy --- probably forever.
"We don't think we'll be back in that [precovid] period of low inflation," Lagarde said, saying Russia's invasion of Ukraine "will change the situation and landscape we are in." Stated. It works.
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China Economy was the best month since February
From Laura He of CNN Business
China's huge manufacturing and service industries Just saw the first month Growth rates since February, as the Covid restrictions have been relaxed in many cities, according to a survey released Thursday.
But The shadow of a further blockade is the world because Beijing is sending mixed messages . We are still approaching the second largest economy. The best way to get out of the Covid pandemic.
The Chinese Government's Manufacturing Purchasing Managers Index (PMI), primarily targeting large and state-owned enterprises, rose to 50.2 for the first time in June. did. According to the National Bureau of Statistics, it has exceeded the 50 mark since February. Reads above 50 indicate increased activity.
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