Fear of US Recession Rises as Retail Earnings and European Economies Cause Concern
The U.S. economy could be heading for a recession in the next year, according to growing warnings from banks and economists, as a sudden bout of economic pessimism hammers financial markets that had been counting on sustained economic momentum, reports the Washington Post.
U.S. may be barreling toward recession in next year, more experts say (Washington Post)
Meanwhile, Walmart, Target, Home Depot and Lowe’s reported quarterly results this week, and each offered a different perspective on where and how people are spending their money, according to CNBC.
Walmart said some of its more price-sensitive customers are beginning to trade down to private-label brands, while Home Depot emphasized the resiliency among its customer base, a sizable percentage of which is professional home builders and contractors. The reports came after Amazon in late April flashed warning signs for the retail industry when it booked the slowest revenue growth for any quarter since the dot-com bust in 2001 and offered up a bleak forecast.
Here’s what Walmart, Target, Home Depot and Lowe’s tell us about the state of the American consumer (CNBC)
Fears about rising prices and slowing economies have spread to UK and European stock markets following sharp falls in the US and Asia, reports BBC News. On Wednesday, US shares recorded their biggest one-day drop since the early days of the Covid pandemic in 2020 as markets were spooked by gloomy forecasts from major US retailers.
Global stock markets fall as growth fears rattle investors (BBC News)