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Investors aren’t happy, but stocks are up.
If you ever participated in a fantasy football league, you may have experienced a run on a position during your draft. One person picks a kicker or defense mid-round and, suddenly, almost everyone rushes to follow suit. A similar occurrence may be happening in the United States stock market.
While major U.S. stock indices are in positive territory year-to-date, market gains have been concentrated in just a few companies’ stocks.
Brace yourself! The debt ceiling standoff continues.
Consumers aren’t optimistic. The Consumer Sentiment Index fell to a six-month low in May, dropping 9.1 percent month-to-month. Participants in the University of Michigan survey were:
The labor market just keeps growing…and growing…
Last week, the April employment report for the United States arrived. It showed that unemployment dropped to the lowest level in more than 50 years – 3.4 percent. Other highlights included:
Despite more than a year of aggressive Federal Reserve rate increases, the United States economy is still growing, albeit more slowly. U.S. gross domestic product (GDP) – the value of all goods and services produced in the U.S. economy – grew by 5.1 percent over the first quarter.
You may have read or heard that real GDP increased by 1.1 percent over the first quarter. That is also true. In economics, “real” means the value of something after inflation (inflation is the rate at which prices are increasing).