⚠️IMPORTANT⚠️
💥PART 1: The impact of this is ENORMOUS. This is what could happen looking ahead:
🤯Between yesterday and today, we received FUNDAMENTAL DATA about what is happening in the U.S. ECONOMY
📍Given today's data, investors now expect 4 consecutive rate cuts (June, July, September, and October)
📍Furthermore, the chances of a 5th cut in December increased to 33.1% (a lot)
What RECESSIONARY data did we have yesterday⁉️
👉Yesterday, the opening of NEW JOBS PLUNGED, going from 7.480M to 7.192M while 7.490M was expected
-It's the WORST reading in 4 years and WORSE than expected
👉Consumer confidence also PLUNGED for the fifth consecutive month and more than expected as fears about employment increase
-It fell to its lowest level since the early days of the COVID-19 pandemic, dropping from 93.9 to 86, while 87.7 was expected
👉This was already showing a DECLINE in economic activity and came alongside the Atlanta Fed forecasting a GDP DECLINE
What data is shouting for ECONOMIC STIMULUS did we have TODAY⁉️
🔻The U.S. GDP collapsed from 2.4% to -0.3% while 0.2% was expected
🔻The U.S. ECONOMY is 1 quarter away from entering TECHNICAL RECESSION if another decline is recorded
🔻Additionally, new jobs outside the agricultural sector fell from 147K to 62K while 114K was expected
🔻The monthly CORE PCE INFLATION FELL more than expected, going from 0.5% to 0% while 0.1% was expected
🔻The annual core PCE stands at 2.6% as expected, previously 3%
👉The Core PCE is a measure of inflation that excludes food and energy to better reflect inflation
👉It is more important than the "common" PCE because it is the preferred metric by the Federal Reserve
