'Soft landing' hopes are back to lift US stocks after recession scare

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 53%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

'Soft landing' hopes are back to lift US stocks after recession scare

NEW YORK - Hopes for an economic soft landing are once again powering U.S. stocks higher, as encouraging data relieve recession worries following a brutal sell-off earlier this month.has rebounded more than 6% since Aug. 5, when a steep drop pushed the benchmark U.S. index to its biggest three-day slide in over two years.

"There was a real growth scare that had emerged," said Mona Mahajan, senior investment strategist at Edward Jones."Since then, what we've seen is the economic data has actually come out in a much more positive light."has gained more than 14%. Small-cap shares, which had been strong performers in July, have also recovered from recent lows, with the

As of late Thursday, futures tied to the Fed funds rate showed traders pricing a 25% chance that the central bank will lower rates by 50 basis points in September, down from around 85% on Aug. 5, CME FedWatch data showed. The probability of a 25 basis point cut stood at 75%, in line with expectations that the Fed will kick off an easing cycle in September.

The Fed's plans could become clearer next week when Chair Jerome Powell speaks at the central bank's annual economic policy symposium in Jackson Hole, Wyoming.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 450. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

USD/CAD: Supported by soft stock marketSoft stocks are helping keep the Canadian Dollar (CAD) tone defensive but whether weaker equity markets are enough of a justification for driving the CAD significantly lower at the moment remains to be seen, Scotiabank’s FX strategist Shaun Osborne notes.
Source: FXStreetNews - 🏆 14. / 72 Read more »