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Weekly stock market analysis – Economic Updates, Jerome Powell’s Warning, PCE Price Index, Joe Biden Student Loan Relief, US-China’s preliminary deal to avoid delistings and more.
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ Click Here
⬇️Timestamps:
0:00 → Economic Updates
3:26 → Personal Consumption Expenditure (PCE) Price index
4:23 → Student Loan Relief by Joe Biden
6:02 → US-China Preliminary Deal to Avoid Delistings
7:24 → Upcoming Important Dates
The S&P 500 plunged more than 3% after the Federal Reserve chair said additional jumbo-sized hikes may be warranted and rates will remain elevated until inflation eases. Bringing down prices “is likely to require a sustained period of below-trend growth” and an increase in unemployment, Powell said at the Kansas City Fed’s annual policy forum in Jackson Hole, Wyoming.
US consumer spending rose at a sluggish pace in July, even while Americans got some relief on prices, indicating the economy is feeling the pinch from the highest inflation in a generation. The personal consumption expenditures price index, which the Federal Reserve uses for its inflation target, fell 0.1% from a month earlier, the first negative print since the start of the pandemic. That in part reflected a notable drop in energy prices, while food costs continued to rise. Excluding food and energy, the price index was up 0.1% in the month. The core measure was up 4.6% from a year ago, a slight deceleration from the previous month.
The spread between the yields on the 10-year and 2-year Treasury notes has been inverted for more than a month, and is now standing at -0.35%. An inverted yield curve has historically been a reliable indicator of a coming recession, coming most recently before downturns in 1990, 2001, and 2008. While brief inversions typically don’t predict a downturn, ones that last beyond a momentary flashing can have stronger predictive power.
Last week, President Biden have announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires. This plan includes loan forgiveness of up to $20,000.
The Public Company Accounting Oversight Board (PCAOB), said announced last Friday that it has signed an agreement with Chinese regulators, taking a first step toward inspecting and investigating registered accounting firms in China and Hong Kong. US regulators have for long been demanding access to audit papers of Chinese companies listed in the United States, but Beijing has been reluctant to let overseas regulators inspect accounting firms, citing security concerns.
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Disclaimer: The content on this channel is for educational purposes only and merely cites my own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary.
