The economy has been struggling since Biden took office. Moreover, the administration’s leadership is causing the stock market to get worse. People are concerned about the state of the economy under the liberals.
US stocks ended flat amid lackluster earnings last August. The Dow Jones industrials ticked down, energy companies fell, and bond yields slipped.
Companies were raising prices on everything – from food to clothing – to help offset the impact of inflation on supply chains. However, the pressure has become too much for many consumers. A surge in gasoline prices throughout the year also worsened inflation… and prompted spending cutbacks.
US Stocks Still Not Doing Well this September
Stocks fell this September… and it even wrapped up one of its weeks to be the worst.
According to CNBC, this month was the worst week for the S&P 500 since June. They reported that:
- The Dow Jones Industrial Average dropped 139.40 points, or 0.45%, to close at 30,822.42
- The S&P 500 shed 0.72% to end the week at 3,873.33
- The Nasdaq Composite slid 0.90% to finish at 11,448.40
When FedEx released its earnings report, traders were cautious about the global economy. Moreover, the company’s stock price plummeted 21.4% after the company announced it was cutting costs due to a worsening global economy. It was their worst daily drop ever. FedEx said it will implement cost-cutting initiatives to contend with soft international shipment volumes… as the global economy “significantly worsened.”
FedEx’s announcement comes soon after a hotter-than-expected inflation report in the US. This raised concerns that the Federal Reserve will be forced to cause a recession to cool prices.
US investment analyst at eToro Callie Cox described the economy’s current situation. He said on CNBC, “There is a lot of nervousness about how the global economy can affect the US economy now. Meanwhile, the U.S. economy is dealing with its own severe issues. I think that dynamic is what people have woken up to.”
Wall Street Struggles Amid Economic Warnings
Newsmax also reported that Wall Street ended lower. Wallstreet extended its losses as a raft of economic data failed to alter the expected course of aggressive tightening by the Federal Reserve amid growing warnings of a global recession.
Interest rate-sensitive banks helped in lessening the blue-chip Dow’s decline.
Matthew Keator, the managing partner in the Keator Group, shared his thoughts during an interview. He said, “It’s been a difficult year, and investors are wary. Until something changes, the tie will go the runner, and that’s been the bear.”
Meanwhile, the senior portfolio manager at Dakota Wealth, Robert Pavlik, shared the uncertainties in the economy…, especially with the federal government’s inaction. He said, “The question is, what’s going to happen in November? If the Fed wants to handle it properly, it will be a 50 basis-point drop in November… a 25 basis-point cut in December, and then they’ll reassess.”
The stock market has gotten worse under the Biden administration. Many investors are worried about what will happen next. Now it’s clear that the liberals are not cut for the job.
