CNBC Daily Open: What recession? The U.S. economy grew at rapid pace

US President Joe Biden visits Emmaus Run Inn in Emmaus, Pennsylvania, on January 12, 2024. Biden is visiting a number of small companies to tout his Bidenomics financial plan.

Mandel Ngan | AFP | Getty Images

This report is from immediately’s CNBC Daily Open, our worldwide markets publication. CNBC Daily Open brings traders on top of things on every little thing they should know, irrespective of the place they’re. Like what you see? You can subscribe here.

What you might want to know immediately

Asia largely down
Asia-Pacific markets
mostly fell Friday as electrical car shares within the area dropped for a second day, monitoring the slide in Tesla shares in a single day. All three U.S. indexes ended within the inexperienced after strong U.S. fourth-quarter GDP data, which beat Wall Street expectations. The Dow Jones Industrial Average climbed 0.6%, whereas the S&P 500 rose 0.5% to a brand new all-time closing file. The tech-heavy Nasdaq Composite, inched up about 0.2%, weighed down by a sell-off in Tesla.

Tesla shares plunge 12%
Shares of electrical car maker Tesla plunged 12%, their greatest drop in over a 12 months. The transfer got here a day after the corporate’s earnings missed expectations and it warned of a slowdown in 2024. Tesla’s stock additionally got here beneath strain from numerous brokers, who lowered their worth targets for the corporate.

China’s monetary establishments urged to do extra
A senior Chinese financial regulatory official stated the nation’s monetary establishments ought to provide help to the struggling actual property sector and never “blindly withdraw” financing for initiatives which are in bother. His remarks observe the Chinese central financial institution’s largest cut in mandatory cash reserves for banks since 2021. 

Commodity markets in ‘tremendous squeeze’ spot
Supply disruptions and lack of funding are placing global commodity markets in a “tremendous squeeze,” in accordance with HSBC. The difficulty is more likely to worsen as geopolitical and local weather dangers irritate the state of affairs, the financial institution added.

[PRO] Buy or keep away from China?
Is it time to get into China markets? Some traders have been cautious since Beijing has been battling a property debt disaster that has triggered monetary dangers throughout the broader economy. The Pro analysts give their take.

The backside line

What recession?

The U.S. economy grew at an accelerated pace within the ultimate three months of 2023, capping the 12 months on a stable notice. 

And the recession that so many forecasters had predicted did not occur. 

The newest GDP information confirmed the economy grew at a rate of 3.3% within the fourth quarter, a lot increased than Wall Street’s estimates.

The numbers additional confirmed the U.S. economy’s unbelievable resilience following intense efforts from the Fed to aggressively hike rates of interest to battle inflation.

The Biden administration wasted no time in attempting to assert credit score. U.S. Treasury Secretary Janet Yellen stated it was authorities insurance policies that helped increase the economy.  

“Though some forecasters thought a recession final 12 months was inevitable, President Biden and I didn’t,” Yellen said in a speech.” Instead of contracting, the economy has continued to develop, pushed by American employees and President Biden’s financial technique.”

“Put merely, it has been the fairest restoration on file,” Yellen added.

Thursday’s report additionally included excellent news on the inflation entrance. The core private consumption expenditures worth index posted a quarterly acquire of two%, excluding meals and vitality — a key gauge the Fed makes use of when assessing inflation. Headline inflation elevated simply 1.7%.

With all the info pointing in the correct course, it appears to be like just like the economy may very well be inching near the a lot talked about smooth touchdown, if it hasn’t already.   

— CNBC’s Jeff Cox contributed to this report.

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