Tag Archive for: NASDAQ

Fearing Fed, Stocks Tumble And Major Investor Slashes Expectations

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All three major U.S. stock indices fell Friday morning as investors worried that the Federal Reserve’s ongoing campaign of aggressive interest rate hikes would weaken the economy.

With Friday poised to be the fourth day in a row of slumping stocks, the Dow Jones Industrial average fell by 1.36%, the S&P 500 by 1.7% and the Nasdaq Composite fell by 2%, according to CNBC. Investors’ fears followed a late Thursday announcement by Goldman Sachs analysts, who slashed their year-end expectations for the S&P 500 by 16%, according to Reuters.

“Based on our client discussions, a majority of equity investors have adopted the view that a hard landing scenario is inevitable and their focus is on the timing, magnitude and duration of a potential recession and investment strategies for that outlook,” David Kostin, an analyst at Goldman, wrote in the note, according to Reuters.

This follows a Goldman Sachs note released earlier this week, which warned that the Fed was unlikely to relent from its pace of interest rate hikes, even in the event of a so-called “soft landing” where inflation is managed without inducing a recession. Fed Chair Jerome Powell has been clear that the agency will continue rate hikes until inflation is brought under control, and is well on its way to the Fed’s target of 2% annually.

Goldman’s earlier note predicted that the Fed would continue raising rates at least through the end of the year, with a 0.75% interest rate hike in November and a 0.5% interest rate hike in December. Central banks around the world, even some that previously had negative interest rates, have been aggressively pursuing rate hikes as inflation hammers economies worldwide, according to The Wall Street Journal.

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JOHN HUGH DEMASTRI

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President Trump Grows the Fastest Economic Recovery in U.S. History

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Despite the Democrat lockdowns, riots, looting, widespread crime and violence — the American people want what’s right, decent and good.

The fastest economic recovery in U.S. history

Under President Trump, America built the strongest economy the world has ever seen. The stock market broke records, the unemployment rate dropped to its lowest level in half a century, and income inequality fell as blue-collar jobs returned to our country.

Then, as a pandemic from China spread across the globe, President Trump made the difficult but necessary decision to shut the economy down to slow the spread of COVID-19.

Now, as we safely reopen, our economy is surging back faster than anyone predicted:

  • America added over 9 million jobs from May through July—beating market expectations three months in a row. President Trump’s historic, bipartisan relief package alone is estimated to have saved over 50 million jobs.
  • Retail spending has fully recovered and is now at an all-time high.
  • Industrial production rose for the third straight month in July, with factory output up 3.4 percent last month after a 5.7 percent surge in June.
  • The NASDAQ and S&P 500 stock indices are trading at or near record highs once again, lifting Americans’ 401(k)s.

That result is no accident. After the financial crisis more than a decade ago, it took America over four years to regain 9 million lost jobs. But following the Coronavirus shutdown, it took the Trump Economy only a few months to do just that.

“We had such a strong foundation that we’re recovering much faster than anybody anticipated,” President Trump said at a news conference on Saturday.

In addition to pro-growth, pro-worker policies long before the crisis—including tax cuts, deregulation, renegotiated trade deals, and more—President Trump responded to the pandemic by using the Defense Production Act to lead the greatest mobilization of American industry since World War II.

The Trump Administration has exercised the DPA and related authorities 78 times so far, dispersing over $3.5 billion to speed the development and manufacture of essential materials here at home. President Trump mobilized the productive power of General Motors, for example, to create thousands of ventilators for Coronavirus patients.

As a result, GM repurposed its Kokomo, Indiana, plant in just 17 days. It has now produced over 21,000 ventilators.

Other companies, including Ford Motor Company, GE, 3M, and Puritan Medical have partnered with the Federal Government to ramp up production of everything from N-95 masks to testing swabs. This nationwide effort is boosting American manufacturing, creating jobs, reshoring supply chains, and replenishing our Strategic National Stockpile.

“New factories, businesses, and laboratories are being built all over America to match our Nation’s demand for personal protective equipment, pharmaceuticals, drugs, testing supplies, therapeutics, and vaccines,” President Trump said.

President Trump’s “Made-in-America” strategy is crucial for defeating this virus, important for restarting our economy—and essential for restoring our country’s promise.

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