Jakarta, CNBC Indonesia – The United States (US) stock market opened mixed on Thursday (28/7/2022), after the US economy officially entered a recession.
The Dow Jones was down 127 points (-0.4%) at the open and 1 hour later to 145.76 points (-0.45%) at 32,051.83 and the S&P 500 was down 22.32 points (-0.55%) to 4,001.29. Meanwhile, the Nasdaq fell 106.93 points (-0.89%) to 11,925.5.
Meta Platforms shares slipped 5.9% in pre-opening trading after releasing disappointing financial results. Meanwhile, Ford shares rose more than 5% after announcing financial performance that above expectations and raised dividends.
ADVERTISEMENT
SCROLL TO RESUME CONTENT
–
The correction occurred after the Bureau of Economic Analysis reported that the US economy in the second quarter fell 0.9% or reversed from market expectations in a Dow Jones poll that forecast 0.3% growth.
This continued the contraction in the first quarter of 2022 which was 1.6%. That is, technically the US economy has entered a recession because it contracted and stunted, aka no growth in two consecutive quarters.
“Today’s numbers just heat up projections that we’re entering a recession,” said Mike Loewengart, managing director of E-Trade Investment Planning as quoted by Reuters. CNBC International.
Wall Street on Wednesday (27/7) was still rallying, even though the US central bank (Federal Reserve / The Fed) tightened its monetary policy. Investors continue to bet that the Fed will curb soaring inflation without sending the economy into recession.
The benchmark US interest rate has been raised by 0.75 percentage point this month, in a row of increases in a bid to contain inflation. Investors are also betting that the central bank can keep the economy out of recession.
CNBC INDONESIA RESEARCH TEAM
Next Article
Wall Street Falls, JCI Opens Falling Up to 2%
–
–
(ags/ags)
–
