Rising recession fears keep pushing stocks lower - currently, the biggest downturn since the onset of the coronavirus pandemic. The Dow Jones has been down 8 straight week, the longest losing streak since 1923. In addition, the S&P 500 and Nasdaq have been down for 7 consecutive weeks. Inflation is expected to continue to be higher throughout the year, which will hurt corporate earnings and profitability. To get inflation under control the Federal Reserve is prepared to take a tough stance on raising interest rates, even if that brings the economy into a recession.
Economic reports from last week came back mostly negative: •Manufacturing (New York) - worse than expectation •Manufacturing (Philadelphia) - worse than expectation •Homebuilder Sentiment - worse than expectation •Retail Sales - better than expectation •New Residential Construction - worse than expectation •Existing Home Sales - worse than expectation •Jobless Claims - worse than expectation This week, investors will look for guidance from economic reports like National Economic Activity, Manufacturing, Housing and Jobless Claims.
Comments