Economic experts are once again ringing alarm bells over the possible recession, amid the poor performance of stock markets and the downfall of oil prices.
They suggest Biden is the “lonely voice” in denouncing the possibility of a recession.
Stock Markets Uncertain with Recession Worries
On Tuesday, uncertainty gripped the stock markets, which kept on plunging the whole day. The Dow Jones Industrial Average plummeted by more than 600 points before recovering in the last moments of Tuesday.
S&P faced a similar trend the whole day; it remained down for most of the time before gaining six points at the end of the day.
Likewise, JPMorgan Chase and Wells Fargo saw a downturn before recovering near the closing time.
Energy companies are the biggest losers amid this downturn, due to the nosediving oil and gas prices, amid the fears of recession. Exxon Mobil’s shares dropped by 3.1% as oil prices dropped below $100 a barrel for the first time since May.
Oil drops below $100 per barrel and USA Today bitches. Just the other day they were bitching about gas prices. https://t.co/jGeC6Qn4Sh via @usatoday
— 𝐓𝐢𝐦🇺🇸#StandWithUkraine 🇺🇦 ®™️ (@MstrKnowItAll) July 6, 2022
Economic experts have escalating concerns about these continuous patterns.
For instance, officials at financial service company Morgan Stanley claimed the American economy is facing a tough time as the Russian invasion of Ukraine enters its fifth month, with normalcy still remaining out of sight.
Eventually, this invasion is not only straining oil markets, but also triggering the food crisis, the consequences of which will be felt starting from fall this year.
In addition to that, the Chinese government’s so-called “Zero COVID” strategy to tackle the pandemic put unprecedented roadblocks in the global economies, experts believe.
Biden the Only “Optimistic” Person Left
According to a lead economic strategist of Morgan Stanley, Michael J. Wilson, the Federal Reserve’s aggressive actions to increase interest rates are also dangerous for the economy, as it is promising to trigger a recession.
The upcoming days will be even more dangerous as researchers indicated the market dynamics will push the S&P to a record low of about 3,000 points from its current value of 3831.
BREAKING REPORT: Atlanta Fed Announces GDP for Second Quarter at Minus 2.1 — Basically Confirming THE UNITED STATES ECONOMY Under Joe Biden Is Facing a Recession…
— Chuck Callesto (@ChuckCallesto) July 5, 2022
Once this happens, it will be the announcement of a recession. Other markets will perceive it as a negative sign for the economy, which will eventually result in economic doldrums.
Meanwhile, financial analysts at Bloomberg Economics indicated the likelihood of a recession starting in early 2023 reached 38%, which is more than any previous estimate.
These fears of a recession are mounting at a time when President Biden made multiple efforts to cool down the markets by calling the recession predictions hoaxes.
In his recent interview with the Associated Press, the president established all the negative economic projections are false, adding a recession will not come in the near future.
However, Politico argued Biden is a “lonely voice” in claiming an optimistic outlook on the economy when all indicators are explaining its deteriorating condition.