Stocks slipped again Thursday as investors braced for more interest rate hikes from the Federal Reserve, and the volatility is once again stirring up debates over whether the U.S. economy is headed for a recession.
"Our view right now is that for the next six months the U.S. economy should be okay," said Ahmed Riesgo, chief investment officer for financial services company Insigneo.
He said the strength of the January jobs report has put downward pressure on stocks because it showed resilience in the economy that many investors interpreted as a sign that more rate hikes were coming. Recent reports showing "sticky" inflation have had a similar effect.
These trends increase the odds of a recession, he added, because the uncertainty around inflation makes it more likely the Fed will make a policy mistake.
"Our base case is not a recession," he said. "But when you look a little bit further out over a 12 month period, I think the chances of a mild recession in the United States are very elevated."
He also cited recent comments from Fed officials as evidence for this theory. The nation's top bankers have signaled they are committed to bringing inflation down to 2 percent annually, while also saying hitting that goal effectively requires inducing a recession.
WeWork said its chief executive and chief financial officer both plan to step down.
Shares of e-commerce giant Alibaba fell as China braces for a new wave of Covid.
Dish Network is in talks to sell wireless phone plans through Amazon, according to The Wall Street Journal.
Best Buy topped profit estimates in its latest quarter but also said consumers are spending more cautiously.
Nvidia topped earnings expectations, citing surging demand amid heightened interest in artificial intelligence.
Lawmakers in several states are embracing legislation to let children work in more hazardous occupations, longer hours on school nights and in expanded roles including serving alcohol in bars and restaurants as young as 14.
Target once distinguished itself as being boldly supportive of the LGBTQ+ community. Now that status is tarnished after it removed some LGBTQ+-themed products and relocated Pride Month displays to the back of stores in certain Southern locations in response to online complaints and in-store confrontations that it says threatened employees’ well-being.
With one of three major rating agencies warning that America’s AAA credit is at risk, the stakes are growing in the standoff in Washington over raising the nation's debt limit.
The average long-term U.S. mortgage rate rose this week to its highest level since mid March, driving up borrowing costs for prospective homebuyers facing a housing market that’s constrained by a dearth of homes for sale.
On this edition of Stretching Your Dollar, Corey William Schneider talks about how he made exploring the city a full-time job by founding the New York Adventure Club.
