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Friday, June 21, 2024

US Dollar and Stocks Fall Amid Rising Inflation and Slowing Growth

US Dollar and Stocks Fall as Economic Data Shows Rising Inflation and Slowing Growth

The US dollar fell against a basket of currencies today as key economic data releases pointed to high inflation and signs of slowing growth in the first quarter. The dollar index, which tracks the greenback against a group of six major currencies, dropped 0.43% to 104.669.

Meanwhile, Wall Street stocks also declined as investors digested the mixed bag of economic data. The broad S&P 500 index is currently 0.25% lower at 5,253.23 at the time of writing.

S&P 500 5-Day

Several indicators released by the BEA this morning showed inflation remains elevated. The personal consumption expenditures (PCE) price index, one of the Federal Reserve’s preferred inflation gauges, rose 3.3% in the first quarter compared to the last one. This was above economists’ expectations of 3%.

Core PCE, which excludes volatile food and energy prices, increased 3.6% year-over-year, slightly below analyst expectations of 3.7%.

At the same time, GDP growth slowed sharply to an annualized rate of 1.3% in the first quarter, hitting 1.3% estimates and down from 3.4% in the prior quarter.

Other data showed corporate profits declined 1.7% in the first quarter after rising 3.9% in the previous period. Initial jobless claims came in slightly higher than expected at 219,000 last week. Wholesale inventories and retail inventories excluding autos both rose more than anticipated in April.

This Data comes after the U.S Consumer Confidence Report, which you can Read Here.

Lazarus
Lazarushttps://ljlnews.com
Publisher and editor of LJLNews. I am a Stock Market enthusiast, with an interest for politics. I hope you enjoy reading the articles! Contact me at: Lazaruslucas@ljlnews.com

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