Welcome to Business Outlook
Related Articles
Growing fears of a US recession weighed on equities Thursday as traders gear up for the release of key jobs data that could determine the Federal Reserve’s next interest rate decision.
After a few weeks of gains fuelled by hopes the central bank would soon take its foot off the pedal in tightening monetary policy, data this week has fanned talk that its year-long hiking campaign may have gone too far.
On Wednesday, a report from the Institute for Supply Management showed the US services sector grew less than forecast last month, while another pointed to private employers slowing their hiring pace in March.
The readings came a day after news that job openings had fallen to their lowest level since May 2021.
While traders have long hoped for a tightening of the labour market and an economic slowdown that would allow the Fed to stop lifting rates, there is now a rising concern of a deep recession.
Adding to the unease is ongoing uncertainty about the banking sector after last month’s turmoil that saw two US regional banks go under and Credit Suisse taken over.
The upheaval was largely blamed on the sharp pace of rate hikes over the past year.
(DS)
