What was a time ago was that the appearance of another positive day in the markets became negative because the latest economic data has grown growing fears of stagflation.
First are the ADP work numbers for April. When two days before the government’s own job data for April, the ADP report showed only 62,000 private sectors of work created this month, which are ashamed of estimates for 108,000 and 147,000 of March. This is the weakest printing since July 2024.
Next was the government’s first estimate of the first GDP growth quarter, which entered the negative 0.3% against estimates for positive 0.2%. As the quarter ends in March, economic actors are well aware of the upcoming targets-imported first year loads. Returning to Econ 101, increasing imports (out of the corresponding benefits to exports) is a GDP growth growth.
In fact, the export-import of imbalance cut GDP growth by almost 5% in the first quarter. Also at work are the Doge’s efforts of the Trump administration, with the government’s spending on the GDP for the first time since 2022.
Turning in inflation, the main PCE price index that was emerged within the GDP report increased by 3.5% compared to estimates for a benefit of only 3.1%.
All of this adds up to a huge collapse in US stocks, with NASDAQ less 2% and S&P 500 by 1.5%. That’s the hitting of Bitcoin (BTC), which slips about 1% in conjunction with $ 94,300.
