The FED gave a dark economic outlook, global stocks are sinkingPublished by Terence Mahier | Source
Stocks around the world are sinking after the FED gave a dark economic forecast 📉
The U.S. Federal Reserve forecast a 6.5% contraction in U.S. GDP for 2020, with a 5% rebound in 2021 and 3.5% growth in 2022. So not quite the sharp V-recovery expected... 😅
To make things worst, the possibility of a 2nd wave has emerged as a genuine threat in recent days, with reports of spiking cases and hospitalizations in California, Arizona, Texas and Florida after they began lifting lockdown measures 😷
The Dow Jones is set to open at -3% after a spectacular rally for the past weeks. Just a hiccup or are we heading back in bear territory? 🐻
On the positive side, the FED will keep rates near Zero through 2020 🤯
Global markets had rallied in recent weeks as countries began easing lockdown measures and returning to economic activity, but the prospect of a much longer recovery period and increasing concern over the second wave of Covid-19 cases seems to be tempering previous optimism... 😔
What's your take on the next move of the Dow Jones in the upcoming days?
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- Newspill Team 💊
11-Jun 08:52 (Eastern Time)
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