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Download eTools (Software for Windows): -.The most pessimistic forecast for Wall Street this week came from the National Association for Business Economics, which lowered its forecast for 2020 gross domestic product growth to just 0.5 percent.
This is down from its previously projected 1.7 percent growth.
Moreover, in an economy that has struggled with trade wars, an economic downturn, the coronavirus, and an unprecedented drop in the stock market, it is tough to imagine that the forecast will be any higher.
Roughly one quarter of the U.S. workforce is currently without jobs, and that figure will spike when we factor in people laid off or furloughed from the Trump administration’s trade war with China.
And that is not counting the 13 million new jobless claims filed with the Social Security Administration for this month alone.
The latest unemployment report from the Labor Department last week saw the biggest drop since the Carter Administration, and that is more evidence that the economy is starting to pull back. The 4.3 percent unemployment rate is virtually unchanged from a month ago, when reports showed a 4.4 percent unemployment rate.
But this week, the mood in the stock market turned even darker.
Market expect to close week with double-digit loss, warns Roubini
After Thursday’s 20 percent drop in the stock market, the S&P 500 index is down 13 percent in the first week of March.
The Dow Jones Industrial Average plunged 9 percent last week, marking its worst drop since the financial crisis. The Nasdaq Composite was down 12 percent, and the Russell 2000 down 16 percent.
On a historical basis, it is an awful start to the year, and is the worst since the first week of March 2009.
On the geopolitical front, a Chinese official warned that a protracted trade war between Beijing and Washington will drive the two countries to the brink of recession.
“It might push the two economies closer to recession than being on a track to recovery,”
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