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Tag: US Economy

  • US Supreme Court Allows Fed Governor Lisa Cook to Remain in Office While Upholding Other Trump-Era Dismissals

    US Supreme Court Allows Fed Governor Lisa Cook to Remain in Office While Upholding Other Trump-Era Dismissals

    The Supreme Court of the United States has ruled that Lisa Cook may remain in her position on the **Federal Reserve Board> for the time being, while simultaneously upholding several personnel dismissals carried out by the administration of Donald Trump.

    In its latest decision, the nation’s highest court declined to immediately remove Cook from the Federal Reserve, allowing her to continue serving while related legal proceedings move forward. The ruling offers temporary stability for the U.S. central bank, which plays a critical role in shaping monetary policy, managing inflation, and supporting financial stability.

    At the same time, the Supreme Court upheld other employment actions challenged from the Trump administration, signaling that those dismissals can remain in effect. The mixed outcome reflects the court’s differing assessment of the legal questions surrounding the various appointments and removals.

    The decision comes amid continued legal and political debates over presidential authority to appoint and dismiss senior federal officials serving in independent government agencies.

    Supporters of the administration argue that the president should have broad authority to remove executive branch officials to ensure accountability and effective governance. Critics, however, contend that certain independent agencies require protection from political interference in order to carry out their statutory responsibilities.

    Lisa Cook’s continued service is viewed as significant because of the Federal Reserve’s central role in setting interest rates, overseeing financial institutions, and guiding the U.S. economy through changing economic conditions.

    Legal experts say the ruling does not necessarily resolve the broader constitutional issues involved, as additional litigation could still determine the long-term outcome of Cook’s position and similar cases involving independent federal agencies.

    Financial markets and policy observers are expected to closely monitor future court proceedings, given the potential implications for the independence of regulatory institutions and the balance of executive authority.

    The Supreme Court’s decision highlights the continuing legal battles surrounding presidential powers, federal appointments, and the structure of independent agencies in the United States.

    As the underlying cases continue, Cook will remain on the Federal Reserve Board, while the court’s approval of other Trump-era dismissals reinforces the ongoing national debate over executive authority and institutional independence within the federal government.

    Swifteradio.com

  • Stock Market Update: S&P 500, Nasdaq Dip as Inflation Progress Falters

    Stock Market Update: S&P 500, Nasdaq Dip as Inflation Progress Falters

    US stock markets faced a setback on Wednesday, with key indices retreating after fresh data suggested inflation remains stubbornly high, challenging the Federal Reserve’s efforts to hit its 2% target.

    The S&P 500 (^GSPC) dropped 0.4%, while the Dow Jones Industrial Average (^DJI) slid 0.3%. The Nasdaq Composite (^IXIC), led by losses in tech stocks, declined by 0.6%. This follows Tuesday’s record highs, dampening investor sentiment ahead of the Thanksgiving holiday, when markets will close Thursday and have shortened trading hours on Friday.

    Inflation Data Raises Concerns

    The Federal Reserve’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) index, showed modest growth in October. Core PCE, which excludes volatile food and energy prices, rose 0.3% month-over-month, aligning with Wall Street expectations. Annually, core prices increased by 2.8%, slightly above September’s 2.7%.

    This flat progress in inflation control has raised questions about the Fed’s next move. Current market forecasts, based on the CME FedWatch Tool, indicate a 34% probability that the Fed will hold interest rates steady at its upcoming meeting—a notable increase from 24% a month earlier.

    Broader Economic Indicators

    Additional economic reports released Wednesday painted a mixed picture. The second estimate for third-quarter GDP remained unchanged, showing a 2.8% annualized growth rate. Meanwhile, the labor market showed resilience, with weekly jobless claims dropping to 213,000 from the prior week’s 215,000—indicating continued strength in employment.

    Corporate and Trade Developments

    In corporate news, Dell Technologies (DELL) shares plunged over 12% after quarterly revenue missed expectations, reflecting weak PC demand. Similarly, HP (HPQ) suffered an 11% loss post-earnings, compounding concerns in the tech hardware sector.

    On the trade front, President-elect Donald Trump appointed Jamieson Greer as the new US Trade Representative. Greer, a key figure in Trump’s first-term China tariff policies, has sparked speculation about the administration’s approach to future trade agreements and tariffs on top US trading partners.

    Outlook

    As markets enter a holiday-shortened week, investors are cautiously navigating a mix of economic signals and corporate challenges. Persistent inflation and trade policy uncertainties remain key themes that could shape market direction in the coming weeks.

    For updates on the stock market and economic trends, stay tuned to our blog.

    Source : Swifteradio.com

  • Manufacturing Sector Sheds 78,000 Jobs Over Three Months Amid Strikes and Economic Challenges

    Manufacturing Sector Sheds 78,000 Jobs Over Three Months Amid Strikes and Economic Challenges

    The US manufacturing sector continues to face challenging times, as evidenced by the loss of 78,000 jobs over the last three months, according to data released by the Bureau of Labor Statistics (BLS). This ongoing decline underscores a broader struggle within the sector, influenced by labor strikes and other economic pressures. The October jobs report highlights how these factors have collectively impacted employment in manufacturing, as well as the sector’s outlook in the coming months.

    October Manufacturing Jobs Data Reveals Significant Losses

    In October, the manufacturing sector lost a reported 46,000 jobs, marking a steep decline following losses in August and September. This recent data points to a sustained contraction in manufacturing employment, with 26,000 jobs lost in August and an additional 6,000 in September. These preliminary figures highlight a concerning trend, as the sector grapples with labor disputes and disruptions across its workforce.

    One major contributor to September’s job loss was the transportation equipment manufacturing industry, which shed 44,000 jobs, largely due to a significant strike involving 33,000 machinists at Boeing. This labor action, initiated by the International Association of Machinists and Aerospace Workers (IAM) on September 13, has led to disruptions within Boeing’s production lines and affected its supply chain. As a result, several Boeing suppliers, including Spirit Aero, have been forced to furlough workers temporarily, further amplifying the ripple effect throughout the sector.

    Impact of the Boeing Strike on Manufacturing Jobs

    The Boeing strike underscores the critical impact of labor disputes on employment figures within manufacturing. The IAM machinists’ strike at Boeing, a major player in the US aerospace industry, has had significant repercussions. The union, which initially rejected Boeing’s contract offers, remains in negotiation with the company, which extended a new offer to the union as recently as Thursday. If an agreement is reached, it could potentially stabilize employment figures within Boeing and its supplier network.

    Additionally, the strike by 5,000 IAM machinists at Textron, an aerospace and defense contractor, has contributed to the sector’s job losses. The Textron strike, which began on September 23 and concluded on October 21, further weighed on employment data, given the sector’s sensitivity to such disruptions.

    Long-Term Trends: Manufacturing Sector Job Losses Over the Past Year

    The recent job losses in manufacturing are not isolated incidents but reflect a broader trend. Over the past six months, the sector has lost a total of 85,000 jobs, representing a 0.7% decline. Over the last 12 months, manufacturing employment is down by 50,000 jobs, or 0.4%. While the sector saw a strong month in November 2023, with a gain of 25,000 jobs, growth has stagnated in 2024. The last positive month for job gains in manufacturing was July, with a modest increase of 6,000 positions, and the highest monthly gain for the year was in April with 7,000 jobs added.

    These numbers illustrate an ongoing struggle within the manufacturing industry to maintain consistent job growth, particularly amid shifting economic policies, rising operational costs, and labor challenges.

    Policy Perspectives: Calls for Support and Tax Reforms

    Amid these job losses, the National Association of Manufacturers (NAM) has called for government action to help stabilize and grow the manufacturing workforce. NAM emphasizes the need for policies that support capital investment and alleviate regulatory burdens. Specifically, they are advocating for a restoration of tax incentives for companies that expand or upgrade their facilities and equipment, which could drive job creation and stimulate growth within the sector.

    NAM has also urged Congress to provide long-term stability by extending key provisions in the Tax Cuts and Jobs Act of 2017, set to expire in 2024. The organization has warned of a “tax armageddon” if these provisions lapse, creating potential tax burdens that could further strain the manufacturing industry. NAM’s policy recommendations underscore the importance of a supportive tax environment to foster competitiveness and resilience in the face of economic and labor pressures.

    Broader Economic Context: Factors Influencing Manufacturing Jobs

    Several broader economic factors continue to influence job trends in manufacturing, including trade policies, supply chain issues, and energy costs. For instance, the Biden administration’s recent discussions around limiting liquefied natural gas (LNG) exports have raised concerns within the industry. According to a recent study, such restrictions could place nearly a million jobs at risk across various sectors, including manufacturing, as energy-intensive industries face potential cost increases.

    Manufacturing Sector’s Outlook for 2024

    Looking forward, the manufacturing sector faces both challenges and opportunities. The resolution of labor disputes, such as the Boeing strike, could restore some stability to the sector, while favorable tax policies and regulatory reforms could create a foundation for renewed growth. However, without strategic support, the sector may continue to struggle with job losses and stagnating employment.

    Given the current economic landscape, it remains crucial for policymakers to address the needs of the manufacturing sector. Supportive policies could enhance the sector’s competitiveness and resilience, helping to prevent further job losses and enabling manufacturers to navigate the complex challenges posed by labor, trade, and energy considerations.

    In conclusion, the October jobs report highlights significant headwinds for the US manufacturing sector, with 78,000 jobs lost over the past three months alone. As the sector navigates labor disputes and economic challenges, its future will largely depend on the response of policymakers and the successful implementation of supportive measures that can help revitalize manufacturing jobs and sustain growth within this crucial industry.

    Source : Swifteradio.com

  • Dollar Dips as US Polls Shift Towards Kamala Harris: Market Movements and Key Economic Events

    Dollar Dips as US Polls Shift Towards Kamala Harris: Market Movements and Key Economic Events

    The US dollar weakened as investor sentiment shifted following new poll data indicating that Kamala Harris is gaining momentum in the presidential race. This market reaction is seen as a response to changing expectations around the upcoming election. Meanwhile, oil prices rose, spurred by OPEC+ delaying its planned production increase. These developments occurred in a backdrop of diverse economic signals and investor expectations around central bank policies, interest rates, and fiscal moves.

    Dollar Declines as Election Polls Show Harris Gaining Support

    The US dollar index fell significantly, marking its most substantial drop in over two months. This decline came as the Des Moines Register published a poll showing Harris leading Donald Trump with a 47% to 44% advantage in Iowa, a state Trump previously secured in both 2016 and 2020. Market participants reacted to the shifting poll data by adjusting their positions, signaling a reduced confidence in a Trump victory. The Mexican peso, a currency that faced sharp declines following Trump’s 2016 win, emerged as a top performer against the dollar amid the recent shifts.

    Political shifts have historically influenced the dollar’s strength, with Trump’s economic policies typically linked to higher Treasury yields and a stronger dollar due to his approach toward tariffs and fiscal policy. However, with poll results showing a close contest, investors are re-evaluating these factors, leading to fluctuations in the dollar’s value and in US Treasury yields.

    Treasury Yields and Investor Sentiment

    Over the past few weeks, the dollar gauge and 10-year Treasury yields had both climbed to their highest levels since July. Investors initially appeared optimistic about Trump’s re-election prospects, betting on his continued support for pro-growth fiscal policies. However, Trump’s policies have also sparked concerns over a potentially increasing federal deficit and rising inflation, factors that could weigh on the long-term value of Treasuries. Bill Maldonado, CEO of Eastspring Investments, emphasized the unpredictability surrounding policy implementation under Trump, making it difficult for investors to firmly establish market positions.

    Asian shares and Treasury futures posted gains amid these developments, as some investors re-evaluated their portfolios. European stock futures followed suit, inching up alongside US futures after Wall Street closed on a positive note last Friday, partly buoyed by strong earnings from technology giants like Amazon and Intel.

    Central Bank Decisions and Economic Indicators in Focus

    In addition to the US presidential race, key economic events this week include central bank rate decisions in the US, UK, and Australia, which will shape broader market trends. The Federal Reserve is anticipated to reduce rates by 25 basis points, following data indicating a slowdown in US hiring. Job growth advanced at its slowest pace since 2020, although this figure may have been influenced by recent hurricanes and a significant strike. Economists are similarly predicting a quarter-point rate cut from the Bank of England, bringing its benchmark rate to 4.75%.

    These decisions by major central banks reflect ongoing efforts to stabilize economies amid global uncertainties. With inflation and economic growth slowing, policymakers aim to balance support for economic activity while mitigating long-term risks.

    Oil and Gold Prices

    In the commodities market, oil prices rose, with West Texas Intermediate (WTI) crude gaining nearly 2%. The Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to delay their scheduled December production hike by a month, a move intended to stabilize oil prices. Additionally, escalating tensions in the Middle East contributed to rising prices, as Iran issued warnings against Israel, further stirring geopolitical concerns.

    Gold, traditionally viewed as a safe haven, remained relatively stable amid these developments. The stability in gold prices reflects cautious optimism in the market, with investors balancing safe-haven assets against the more volatile equity markets and currency fluctuations.

    Source : Swifteradio.com

  • U.S. Ports Face Historic Shutdown as Dockworkers Strike Indefinitely

    U.S. Ports Face Historic Shutdown as Dockworkers Strike Indefinitely

    In a significant turn of events, tens of thousands of dockworkers have initiated an indefinite strike at major ports across the United States, marking the first such shutdown in nearly 50 years. The strike, led by members of the International Longshoremen’s Association (ILA), began on Tuesday and has effectively halted container traffic from Maine to Texas. With the presidential election and the busy holiday shopping season on the horizon, this strike poses a serious threat to trade and the overall economy.

    Reasons Behind the Strike

    The catalyst for the strike stems from stalled contract negotiations, as the current agreement between the ILA and shipping firms expired on Monday. The White House has confirmed that President Biden and Vice President Kamala Harris are closely monitoring the situation. “The President has directed his team to convey his message directly to both sides that they need to be at the table and negotiating in good faith—fairly and quickly,” stated a White House representative.

    The ILA and the U.S. Maritime Alliance (USMX) are at an impasse over a six-year master contract that affects approximately 25,000 port workers involved in container and roll-on/roll-off operations. USMX recently increased its wage offer, proposing nearly a 50% raise along with enhanced pension contributions and healthcare options. Meanwhile, ILA leadership is advocating for significant pay increases due to rising automation concerns and the financial impact of inflation on workers’ wages.

    Union leader Harold Daggett has voiced that workers deserve a pay hike, arguing that they are owed compensation as shipping profits soared during the pandemic. The ILA claims to represent over 85,000 workers, with about 47,000 active members currently reported.

    Potential Impact on Goods and Economy

    The ongoing strike is expected to have immediate repercussions on time-sensitive imports, such as food products. The ports involved handle approximately 14% of U.S. agricultural exports and more than half of imports, which include key items like bananas and chocolate. Additionally, industries such as tobacco, clothing, and automotive sectors could also experience significant disruptions.

    According to Seth Harris, a Northeastern University professor and former White House labor adviser, while immediate economic impacts may be minimal, prolonged strikes could lead to rising prices and shortages in the coming weeks. Grace Zemmer, an associate U.S. economist at Oxford Economics, estimates that the strike could cost the U.S. economy approximately $4.5 billion for each week it lasts, with over 100,000 workers potentially facing temporary layoffs.

    Political Ramifications Ahead of Elections

    The timing of this strike adds a layer of complexity to the upcoming U.S. general election, as President Biden faces scrutiny amid rising unemployment and economic uncertainty. Historically, U.S. presidents can intervene in labor disputes that threaten national security or safety, imposing an 80-day cooling-off period. However, the White House has indicated that no such action is currently planned.

    Calls for intervention have come from various quarters, including the U.S. Chamber of Commerce, which emphasized the need for prompt action to prevent economic disruptions similar to those experienced during pandemic-era supply chain issues. Suzanne P. Clark, president and CEO of the Chamber, expressed concerns about allowing a contract dispute to adversely affect the economy.

    While Daggett endorsed Biden in 2020, his recent criticisms of the administration highlight the delicate balance Biden must strike. The potential fallout from this strike could sway public opinion against the ILA, despite the historical significance of labor movements in the U.S.

    As the situation develops, the resolution of this strike will not only impact dockworkers but could also reverberate through the broader economy and influence the political landscape as the election approaches.

    Source: BBC

  • Time Running Out to Avoid Disruptive US Port Strike: Key Concerns Mount as Deadline Nears

    Time Running Out to Avoid Disruptive US Port Strike: Key Concerns Mount as Deadline Nears

    As the clock ticks down, a major disruption looms over ports along the East and Gulf Coasts of the United States. Members of the International Longshoremen’s Association (ILA) are set to strike by 12:01 a.m. ET on Tuesday, potentially bringing commerce to a standstill across 14 port authorities from Texas to Maine. With no resolution in sight between the ILA and the United States Maritime Alliance (USMX), the US economy faces one of its most significant strikes in decades.

    The potential strike affects 36 facilities and threatens to halt the movement of essential goods, from bananas and wine to household items and industrial materials. Major shipping routes, including those from the Port of New York and New Jersey—the nation’s third-largest by cargo volume—could come to a halt, leading to potential supply shortages and price hikes. Retailers and manufacturers, particularly those who depend on imported goods, have been racing to stock up before the strike deadline.

    Economic Impact of the Port Strike

    A one-week strike could result in losses of over $2 billion, with perishable goods suffering the most. The Anderson Economic Group (AEG) estimates that $1.5 billion of this would be due to delayed deliveries, and another $400 million would affect transportation companies. Striking workers would face $200 million in lost wages, with further economic damage the longer the strike continues.

    However, analysts like Patrick Anderson, president of AEG, caution against exaggerated predictions of $1 billion in daily losses, noting that many shippers have made preparations ahead of the strike. “A strike delays trade but does not destroy it,” Anderson said, adding that disruptions would likely increase significantly if the strike extended beyond one week.

    Major Ports at Risk

    In addition to the Port of New York and New Jersey, other critical ports facing potential shutdowns include Port Wilmington in Delaware, known for handling 25% of the nation’s bananas, and the Port of Baltimore, the country’s largest importer of vehicles. Many retailers have already pushed to receive goods before the October 1 deadline, particularly with the holiday season approaching.

    Negotiations and Sticking Points

    The crux of the standoff revolves around wages. The USMX has offered wage increases of up to 40% over a six-year contract, but the ILA demands more substantial hikes—totaling 77% over the same period. The union argues that the shipping industry, which earned record profits during the pandemic, can afford to pay higher wages.

    ILA President Harold Daggett has been vocal about rejecting what he calls “insulting” offers. “My ILA members are not going to accept these insulting offers that are a joke considering the work my ILA longshore workers perform,” Daggett said, emphasizing the industry’s profits during the pandemic.

    Political Pressure to Prevent the Strike

    With businesses on edge and the potential for widespread economic damage, pressure is mounting on the Biden administration to intervene. Over 200 business groups have urged President Joe Biden to use his authority to block or mitigate the strike, especially in light of the recent Hurricane Helene that caused damage to the Southeastern US. However, Biden has remained firm in his belief in the collective bargaining process and has expressed no intention of invoking the Taft-Hartley Act, which could force workers back to their posts.

    Key members of the administration, including Labor Secretary Julie Su and Transportation Secretary Pete Buttigieg, have met with USMX representatives to encourage negotiations. However, the ILA declined to attend, maintaining that any failure to reach a deal lies with management.

    What’s Next?

    Should the strike proceed, it could disrupt the flow of goods at most major East and Gulf Coast ports. Essential items like military cargo and passenger ships would continue to operate, but the general movement of imports and exports would slow considerably. Even if the Taft-Hartley Act were invoked, longshore workers could legally work slower, reducing efficiency and creating backlogs that could take weeks, if not months, to clear.

    As businesses, retailers, and consumers wait anxiously, the next 24 hours are crucial. The question remains whether the two sides can come to an agreement before the strike begins or whether the US economy will face another blow to its already fragile supply chain.

    Source: CNN

  • US Stock Market Reacts to Federal Reserve’s Interest Rate Stance

    US Stock Market Reacts to Federal Reserve’s Interest Rate Stance

    The US stock market experienced volatility following the Federal Reserve’s decision to maintain its interest rates at current levels. In its latest policy statement, the central bank signaled that it would likely hold rates steady for the foreseeable future while continuing its efforts to bring inflation under control.

    The decision was part of the Fed’s broader strategy to ensure price stability, despite pressures from investors hoping for rate cuts to stimulate economic growth. Federal Reserve Chair Jerome Powell emphasized the need to carefully balance interest rate policy with ongoing inflation concerns.

    Fed’s Rate Strategy and Economic Implications

    The Federal Reserve’s statement highlighted that while inflation had shown signs of easing, it remained above the 2% target set by the central bank. With this in mind, Powell indicated that the Fed’s top priority was to avoid prematurely cutting rates, which could reignite inflationary pressures. Analysts believe that this measured approach underscores the Fed’s commitment to avoiding drastic moves that could destabilize the financial system.

    Despite the decision, there remains a growing divide between the central bank’s policy and market expectations. Some investors have expressed concerns about the long-term effects of high interest rates on business investment, housing affordability, and consumer spending.

    Stock Market Response

    The announcement caused an initial dip in major stock indices, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all experiencing minor declines. Many investors had hoped for a more accommodative stance from the Fed, which would have provided a boost to market confidence. However, others appreciated the Fed’s cautious approach, recognizing that a premature rate cut could lead to greater economic volatility.

    Some sectors, including technology and consumer discretionary, saw sharper declines as higher interest rates tend to affect borrowing costs, which in turn can limit corporate growth. Meanwhile, defensive sectors like utilities and consumer staples showed relative resilience.

    Broader Economic Concerns

    The Fed’s decision also comes at a time when global economic uncertainties are intensifying, particularly due to the ongoing impact of geopolitical tensions, energy prices, and supply chain disruptions. The central bank’s focus on keeping inflation in check reflects its commitment to fostering long-term economic stability, but its policies could also mean slower economic growth in the near term.

    Economists suggest that the Fed may have to maintain a tight policy for an extended period if inflation remains sticky, potentially keeping interest rates higher than anticipated through 2024. This uncertainty has left investors wary, with many re-evaluating their portfolios amid concerns over the broader economic outlook.

    Source: The New York Times

  • Asian Stock Markets Mixed Following Wall Street’s New Record Highs – The Associated Press

    Asian Stock Markets Mixed Following Wall Street’s New Record Highs – The Associated Press

    Currency traders pass by a screen displaying the Korea Composite Stock Price Index (KOSPI) and the exchange rate between the U.S. dollar and South Korean won at the KEB Hana Bank headquarters’ foreign exchange dealing room in Seoul, South Korea, on Wednesday, June 19, 2024. (AP Photo/Ahn Young-joon)

    Currency traders monitor screens near a display showing the KOSPI and the exchange rate between the U.S. dollar and South Korean won at the KEB Hana Bank headquarters’ foreign exchange dealing room in Seoul, South Korea, on Wednesday, June 19, 2024. (AP Photo/Ahn Young-joon)

    The New York Stock Exchange is seen on Tuesday, June 18, 2024, in New York. Shares mostly rose in Europe and Asia after U.S. stocks hit new records, driven by gains in technology companies. (AP Photo/Peter Morgan)

    Asian markets were mixed on Wednesday following U.S. benchmarks setting more records amid signs of a slowing U.S. economy that hasn’t yet fallen into recession. U.S. futures were mixed, and oil prices remained steady.

    In Tokyo, the Nikkei 225 index increased by 0.2% to 38,575.54, as Japan’s May trade data showed a 13.5% rise in exports and a 9.5% increase in imports compared to the previous year, driven by higher prices and a weaker yen. Minutes from the Bank of Japan’s latest policy meeting revealed discussions about whether the yen’s weakness could drive inflation higher, with Governor Kazuo Ueda hinting at a potential rate hike depending on economic data.

    The Hang Seng in Hong Kong rose 2% to 18,264.51, while the Shanghai Composite index fell 0.3% to 3,020.03 after China’s securities regulator announced plans to enhance oversight of financial activities to mitigate risks. In Sydney, the S&P/ASX 200 dipped 0.2% to 7,764.30. South Korea’s Kospi surged 1% to 2,792.14. Taiwan’s Taiex climbed 1.8%, while Bangkok’s SET decreased by 0.1%.

    On Tuesday, the S&P 500 gained 0.3% to 5,487.03, marking its 31st record high this year. The Nasdaq composite rose by less than 0.1% to 17,862.23, and the Dow Jones Industrial Average increased by 0.2% to 38,834.86.

    Nvidia continued to be a standout performer, with its shares rising 3.5%, contributing significantly to the S&P 500’s gains. Nvidia’s chips are key in AI development, with demand skyrocketing, leading to tripling revenues each quarter and soaring profits. Its stock has surged nearly 174% this year, accounting for almost a third of the S&P 500’s gains through May. However, the heavy reliance on a few top performers could indicate a fragile market.

    Retail sales in May rose by 0.1%, below expectations, with April sales revised downward by 0.2%. March and February saw rises of 0.6% and 0.9%, respectively, while January sales fell by 1.1% due to adverse weather. The weaker data might suggest cracks in household spending, the main driver of the U.S. economy, as inflation remains high, particularly affecting lower-income households.

    Despite this, a Bank of America survey showed global fund managers’ optimism at its highest since autumn 2021, with significant stock allocations and less cash hoarding, and fewer predictions of a severe recession.

    In early Wednesday trading, U.S. benchmark crude oil remained steady at $80.71 per barrel, while Brent crude rose slightly to $85.35 per barrel. The dollar strengthened to 157.87 Japanese yen from 156.87 yen, and the euro slightly declined to $1.0737 from $1.0740.

    AP Business Writer Stan Choe contributed to this report.

    source: apnews.com