This article was added by the user . TheWorldNews is not responsible for the content of the platform.

Stocks fall as reports reveal a recession in consumer spending

Thursday morning, new consumer data cuts spending for Americans in the face ofHigh inflation, where stock prices fell because it revealed that it was doing.

Government reports show that consumer spending rose from April to May with a0.2% downturn, weakening in the face of high inflation. did. The fastest price increase in 40 yearsis putting financial pressure on American homes, especially workers and the middle class. The

S&P fell 1.7% to 3,751, while the Dow fell 1.5% or 476 points to 30,552. High-tech-intensive Nasdaq has decreased by 2.3%.

On Wednesday, the government confirmed that the US economy shrank 1.6% in the first quarter, lowering previous estimates.

Investors are worried about the signs that the world's largest economy may be facing a recessionto cool the surge in inflation Inflation has been raised.

Equity demand could subside for at least the next four to six months as interest rate hikes work across the US economy, "SPI Asset Management's Stephen Innes said in a report.

Federal Reserve Chairman Jerome Powell said at a meeting of the European Central Bank in Portugal on Wednesday that there is "no guarantee" that inflation can be curbed without damaging the job market. Stated.

US unemployment claims for the week ending June 25 are slightly lower than the previous week of, but layoffs. Has risen from its 50-year low in March. Layoffs are on the rise in recently chilled industries such as real estate, technology and cryptocurrencies.

The world economy was also confused by Russia's invasion of Ukraine, pushing up prices for oil, wheat and other commodities.

In the energy market on Thursday, benchmark US crude fell 96 cents to $ 108.82 a barrel in electronic trading on the New York Mercantile Exchange. 

  • Jerome Powell
  • Economy
  • Stock Market
  • Gas Price
  • Inflation
  • China
  • Corona Virus
  • Asia

Thank you for reading CBS News.

Create a free account or log in to
to take advantage of other features.