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Tuesday, June 20, 2023

The Daily Money: What's worrying the stock market today?

The Daily Money: Investors return from a three-day holiday weekend to worries China's economy is weakening and the Fed may have to keep raising rates.

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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Tue Jun 20 2023
 

Medora Lee |  Money and Personal Finance reporter

It's Medora Lee, and I don't know about you, but I am suffering a three-day weekend hangover. What day is it again? Right, Tuesday.

Looks like I'm not the only one in a haze. All major U.S. stock indexes are lower this morning, unable to extend a recent rally to their 2023 peaks. Investors appear worried about China's weak economy hurting global growth. China is the world's second-largest economy, behind the U.S.

Domestically, we have the opposite worry: Our economy is still way too hot to contain inflation. Housing starts surged 21.7% in May on a seasonally adjusted annual basis for the strongest rise since October 2016 and the eighth largest monthly gain since at least 1959, Wells Fargo economists said. Further, there are more homes coming. Builder permits jumped 18.5% to the highest level in 11 months. This sounds great for renters and home buyers, but for the Federal Reserve and borrowers? Not so much.

"If Fed rate hikes can't bring down the most interest rate-sensitive sector of the economy, then maybe interest rates are still not high enough," said Chris Rupkey, chief economist at market research firm FWDBONDS LLC.
Ap Juneteenth Texas A Usa Tx

Tanieka Francis works among balloons while decorating for the annual Galveston Juneteenth Parade in Galveston, Texas, on Saturday, June 17, 2023.

Stuart Villanueva, The Galveston County Daily News via AP

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About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.
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Counterfeit savings bonds trigger problems for banks, savers

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