In the third quarter of 2022, the US economy grew more than expected. the GDP increased by 3.2% against an initial estimate of 2.9%. The number is positive but it gives the US central bank room to insist its monetary pressures against inflation. the last December 14th Last year, the Fed raised rates by 0.5% to between 4.25 and 4.5%, the highest value since 2007. But with the economy healthy and inflation, although slowing, is still at 7.1%, compared to the optimal level of 2%, could lead the Fed to make a decision more substantial increases in the coming months. In the face of slowing growth, the central bank will instead be urged to rein in interest rates which the higher they are, the more they reduce inflation but punish economic activity. High rates also put the markets in difficulty as the amount of money in circulationIncluding what is invested in stocks, is contracting, profits of listed companies tend to decline.
Faced with this possibility, Wall Street indexes began to lose steam, andS&P500 lost 1.4% With 98% of the companies listed in the red, The Nasdaq lost 2.2%. Among the most penalized stocks It’s Tesla again, down 9%. Since when Elon Musk I bought Twitter The automaker’s shares have fallen by more than half. about parity Bitcoins In the region of 16,700 dollars. The day was also negative for European stock exchanges, albeit with less pronounced declines. Frankfurt lost 1.3%, Paris 0.9%, Milan 1.2%. London finished down 0.3%.
“Prone to fits of apathy. Introvert. Award-winning internet evangelist. Extreme beer expert.”