As the weekend comes to a close, let’s take a look at the top stories that shaped the week. From America’s 18-month manufacturing record to warnings about a potential debt crisis, here’s what you need to know.
Manufacturing activity in the United States hits an 18-month high
The US manufacturing sector has seen a significant recovery, with March 2024 marking the highest growth rate since September 2022. This development has been attributed to the strong performance of SPDR Dow Jones Industrial Average ETF THERE and the SPDRS&P 500 TO SPY. Analysts had predicted a lower growth rate, making this surge a clear indication of improving conditions. Read the full article here.
China’s March manufacturing growth could trigger deflation
China’s manufacturing sector saw a substantial increase in March 2024. This led to a rally in stocks of Chinese companies and metal commodities, potentially causing a deflationary impact on global markets. THE Alibaba Gr. Holding BABA and the VanEck Gold Miners ETF GDX have been among the beneficiaries of this growth.
Experts have warned that this surge could have a deflationary effect on global markets. Read the full article here.
See also: Wall Street Set to Stumble at Open as Traders Keep Eyes on Key Data, Fed Chair Powell Speech: Analyst Finds 2 Reasons to Remain Optimistic in April
US job market heats up in March
The US job market saw a notable boost in March 2024, with an increase of 303,000. It was the highest increase in 10 months and dampened hopes of a rate cut in June. Companies like it AstraZeneca AZN AND Adobe ADBE they were among those who contributed to this growth. Read the full article here.
Mohamed El-Erian criticizes Federal Reserve “overly dependent on data”.
Mohamed El-Erianthe chief economic advisor of Allianz, criticized the US Federal Reserve’s data-driven strategy. He argues that this approach has caused the Fed to lose sight of its broader strategy. This criticism comes at a time when the Fed’s data-dependent approach is under scrutiny. El-Erian suggests that the Fed’s focus on data has led it to become a play-by-play commentator, deviating from its original strategy. Read the full article here.
A “serious debate” is needed to avoid the 2025 US debt crisis
Wharton Professor João Gomes has raised concerns about the rapid growth of US debt. He warns that without immediate action from Congress, the United States could face a debt crisis by 2025. Gomes emphasizes the need for a serious debate to address the issue and prevent a potential crisis. His warning comes at a time when US debt is growing at an alarming rate, raising questions about the country’s financial stability. Read the full article here.
Read next: Wall Street Set to Stumble at Open as Traders Watch Key Data, Fed Chair Powell Speech: Analyst Finds 2 Reasons to Remain Optimistic in April
Wall Street illustration created using artificial intelligence via MidJourney.
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