CNBC Daily Open: What recession? The U.S. economy kept growing

U.S. President Joe Biden speaks with staff whereas visiting CS Wind, the biggest wind tower producer on this planet, in Pueblo, Colorado, U.S., November 29, 2023. 

Andrew Caballero-Reynolds | AFP | Getty Images

This report is from as we speak’s CNBC Daily Open, our worldwide markets e-newsletter. CNBC Daily Open brings buyers up to the mark on every part they should know, regardless of the place they’re. Like what you see? You can subscribe here.

What you could know as we speak

Stocks finish increased
three U.S. indexes ended within the inexperienced on Thursday 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 report. 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 largest 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 below strain from numerous brokers, who decreased their value targets for the corporate.

Apple opens iPhone retailer in Europe
Apple plans to open up its iPhone App Store in Europe to rivals. This transfer opens up cracks within the firm’s well-known “walled garden,” with which it controls app distribution on its gadgets. This was in response to a brand new European regulation, the Digital Markets Act, which forces massive tech corporations to open up their platforms by March of this 12 months.

Lagarde responds to scathing survey
Christine Lagarde mentioned she was “proud and honored” to steer the European Central Bank, after her management was criticized in a union-run survey of employees. Lagarde went on to say that the ECB’s personal surveys prompt folks have been glad to work on the central financial institution and had a way of mission.

[PRO] Buy or keep away from China?
Is it time to get into China markets? Some buyers have been cautious since Beijing has been fighting 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 tempo within the closing three months of 2023, capping the 12 months on a stable observe. 

And the recession that so many forecasters had predicted by no means occurred. 

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 underlined the U.S. economy’s exceptional resilience within the face of sustained efforts from the Fed to aggressively hike rates of interest to combat inflation.

The Biden administration wasted no time in trying to say credit score. U.S. Treasury Secretary Janet Yellen mentioned authorities insurance policies 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 staff and President Biden’s financial technique.”

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

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

With all the information pointing in the suitable course, it seems just like the economy might be inching near the a lot talked about comfortable touchdown, if it hasn’t already.   

— CNBC’s Jeff Cox contributed to this report.

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