The past week has been a rollercoaster ride for the U.S. economy. As the corporate bankruptcy wave looms, tech stocks continue to soar, and China maintains its key interest rate. Here’s a quick recap of the top stories that shaped the week.
Bankruptcy Wave Kicks Into High Gear
Danielle DiMartino Booth, CEO of QI Research, warns of a potential surge in corporate bankruptcies leading to significant job losses. Nine companies, each valued at $50 million or more, have already filed for bankruptcy this year, marking the quickest pace since the pandemic. Booth predicts that the number of large bankruptcies will hit 25 by the end of June. Read the full article here.
Tech Stocks Continue To Rally
Despite the Dow and S&P 500 futures being modestly lower, Nasdaq futures point to a strong start for tech stocks. Analysts are confident of the upward momentum carrying the market through the year, premising their optimism on the likelihood of Fed rate cuts amid easing inflation and the artificial intelligence-driven rally accelerating. Read the full article here.
See Also: Fed Members Cool On Raising Interest Rates: ‘These Conditions Could Take Months, And More Likely Quarters To Play Out’
US Private Sector Activity Exceeds Estimates
The latest surveys by S&P Global reveal an American economy firing on all cylinders in June, with robust activity and cooling inflation creating a goldilocks environment, giving the Fed more leeway to cut interest rates. Read the full article here.
El-Erian Urges For Prompt Fed Rate Cuts
Mohamed El-Erian, the chief economic adviser at Allianz, has urged the Federal Reserve to initiate interest rate cuts to prevent potential economic instability. He warned that a delay in this decision could lead to a more extensive rate cut in the future, potentially risking a recession. Read the full article here.
China Keeps Interest Rates Unchanged
In a bid to stabilize the yuan and manage liquidity, the People’s Bank of China has decided to keep its key interest rate unchanged for the tenth consecutive month. The bank also withdrew a net 55 billion yuan ($7.6 billion) from the banking system to prevent excessive liquidity. Read the full article here.
Read Next: World’s Biggest S&P 500 ETF Bleeds Outflows: Why Isn’t The Market Crashing?
Dollar US Treasuries Photo by Steve Heap on Shutterstock
This story was generated using Benzinga Neuro and edited by Ananya Gairola
