Will there be a recession in the US in 2023?

Posted by:Alex Belov Posted on:Nov 15,2022

At the end of last week, the main US indices rose significantly:

– The S&P 500 (^GSPC) rose 5.5%,

– Dow Jones Industrial Average (^DJI) rose 3.7%,

– Russell 2000 (^RUT) up 3.95%,

– The NASDAQ Composite (^IXIC) rose 7.9%.

Markets rose significantly on news of a slowdown in inflation in the US. Of course, this is great news, but the regulator has a lot of work ahead of it. Therefore, it is now too early to say that the US stock market is leaving the risk zone. It is for this reason that major U.S. tech companies are cutting costs by laying off thousands of employees. This week it is worth looking at how Walmart Inc. will report. (WMT), Target Corporation (TGT), Kohl’s and Macy’s. It is possible that the publication of new data on the labor market may upset the US financial market participants. Analysts believe that the US Federal Reserve will raise interest rates by only 0.25 basis points in December. However, let us not rejoice prematurely.

Recession in the US and Europe in 2023

Analysts at Morgan Stanley believe that in 2023 the US may avoid a recession, while Europe cannot. The UK and Eurozone economies are highly likely to face a recession in 2023. The US will be able to avoid a recession next year thanks to strong demand in the economy and a stable labor market.

The other day also received positive news from China. The Chinese government is lifting some COVID restrictions and implementing 16 measures to support developers. This may have a positive impact on Asian markets. The growth of the Chinese stock market may favorably affect neighboring countries in Asia. Analysts at Morgan Stanley expect the global economy to grow by just 2.2% in 2023, down 0.5% from the previous forecast.

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Alex Belov

Developers by oneinveststock.com. Analyst, investor

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