U.S. economy contracted 0.9% in second quarter, GDP shows
The numbers: The U.S. economy shrank at an annual 0.9% pace in the second quarter to...
The numbers: The U.S. economy shrank at an annual 0.9% pace in the second quarter to mark the second decline in a row in gross domestic product, intensifying a debate over whether the U.S has already sunk into a recession.
GDP, the scorecard of sorts for the economy, had shrunk by a 1.6% pace in the first three months of the year. Economists polled by The Wall Street Journal forecast a 0.3% increase in second-quarter GDP. The back-to-back declines in GDP were the first since the 2007-2009 Great Recession.
Big picture: The economy is slowing. Of that there’s no doubt. The Federal Reserve has jacked up a key U.S. interest rate by 2.5 percentage points since March to try to combat the biggest surge in inflation in almost 41 years.
You might have heard recently that gasoline prices are way too high. In fact, that might be all you’ve...
You might have heard recently that gasoline prices are way too high. In fact, that might be all you’ve heard about.
Consumers, however, have bigger financial concerns, according to a new poll on Americans’ inflation worries. In the poll, 63% of respondents said they are very or somewhat confident they can afford gas. Only 29% said they were not confident they could afford gas. Those numbers do reflect the strain high gas prices are causing consumers, but gas prices cause a lot less concern than other things the poll asked about. (The survey of 4,420 adult Americans took place July 16 and 17. Click here for the complete set of poll results.)
Dow ends up over 400 points, Nasdaq soars 4% as stocks rally after Fed rate hike
U.S. stocks closed sharply higher Wednesday, greeting the Federal Reserve's latest...
U.S. stocks closed sharply higher Wednesday, greeting the Federal Reserve's latest rate hike with a torrid advance that saw the tech-heavy Nasdaq Composite clinch its biggest daily gain since April 2020. The Nasdaq Composite gained 469.85 points, or 4.1%, to 12,032.42. The S&P 500 gained 102.56 points, or 2.6%, To 4,023.61. The Dow Jones Industrial Average gained 436.05 points, or 1.4%, to 32,197.59. Wednesday's gains also marked the biggest rally on a Fed decision day since December 2008, the day the Fed slashed its benchmark interest rate target to between 0% and 0.25% for the first time in history. The Fed's policy-setting committee voted Wednesday to hike the Fed funds rate target 75 basis points for the second month in a row.
MarketWatch: U.S. oil prices settle at their highest in a week
Oil futures climbed...
Oil futures climbed on Wednesday, with U.S. prices marking their highest settlement in a week. There's "no other way to look at energy prices today and not have a bullish outlook," said Tariq Zahir, managing member at Tyche Capital Advisors. The Energy Information Administration reported much larger inventory draws across the board, he said, with U.S. crude, gasoline and distillate supplies all down last week. "We do feel we could see crude regain the $100 level in the days and weeks to come," said Zahir. September West Texas Intermediate crudeCLU22, 2.95%rose $2.28, or 2.4%, to settle at $97.26 a barrel on the New York Mercantile Exchange. That was the highest front-month finish since July 20, FactSet data show.
The Federal Reserve pushes interest rates three-quarters of a point higher
The Federal Reserve on Wednesday raised a key U.S. interest rate for the fourth time this year in an...
The Federal Reserve on Wednesday raised a key U.S. interest rate for the fourth time this year in an aggressive bid to cool off the hottest inflation in four decades, signaling more rate hikes are coming even as the economy softens.
The central bank voted unanimously to lift the so-called fed funds rate by another 0.75 percentage points to a range of 2.25% and 2.5%. Higher rates raise the cost of borrowing for businesses and consumers and tend to slow the economy.
The speed of interest rate hikes this year is the fastest since 1981. The Fed had kept rates pinned close to zero since the pandemic to cushion the shock to the economy. The level of rates now matches the peak in the 2016-2018 tightening cycle. It brings the benchmark rate into territory the Fed considers neutral — neither boosting nor slowing the economy.
