Us inflation is running high. On September 26, local time, data released by the Conference Board showed that, affected by high inflation and other factors, the US consumer confidence index fell from 108.7 in August to 103 in September, the second consecutive month of decline.
The Conference Board says U.S. consumers are still struggling with high commodity prices, especially for groceries and gasoline. At the same time, consumers are concerned about the domestic political situation and high interest rates in the United States.
On the same day, the US stock market continued its decline, and the three major indexes fell more than 1%, hitting a four-month low.
U.S. stocks fell
At the close, the Dow was down 388.00 points, or 1.14%, at 33,618.88. The NASDAQ fell 207.71 points, or 1.57%, to 13,063.61. The S&P 500 fell 63.91 points, or 1.47 percent, to 4,273.53.
Large technology stocks fell, Amazon fell about 4%, Apple fell more than 2%, Netflix, Microsoft, Google, Tesla fell more than 1%, Nvidia, Meta fell slightly. Banks were all lower, with Wells Fargo down more than 2% and jpmorgan Chase, Goldman Sachs, Citigroup, Morgan Stanley and Bank of America down more than 1%. Pharmaceutical company Immunovant bucked the trend, surging more than 97 percent.
Popular Chinese stocks fell, with the NASDAQ China Golden Dragon Index down 0.85%. Pinduoduo, Xiaopeng Automobile, Jingdong fell more than 2%, Ideal Automobile, Alibaba, Weibo fell more than 1%, Futu Holdings, Baidu, NetEase, Manbang, Bilibili, Vipshop, Tencent Music fell slightly. Nio and iQiyi rose slightly.
On September 30, the federal government of the United States will end the 2023 fiscal year, at which time, if there is no budget plan, the United States government will face a "shutdown".
It seems increasingly unlikely that Congress will reach a budget deal amid fierce opposition from the right wing of the Republican Party in the House of Representatives. Many analysts even say that the probability of a US "shutdown" on October 1 is basically 100%.
According to Goldman Sachs 'latest estimate, the "shutdown" could last two to three weeks, taking into account the impact on the private sector, each week of full government "shutdown" will reduce quarterly annualized GDP growth by about 0.2%.
Two-thirds of Americans: Prices are rising faster than wages
With high inflation and continued interest rate hikes, the cost of living for many American families continues to rise and their savings are dwindling.
According to a poll released by the Bank of America on the 25th, 67% of Americans surveyed said that prices in the United States are rising faster than their wages.
According to Bank of America, today's U.S. economic data does not reflect the life of many Americans under high inflation and continued interest rate hikes by the Federal Reserve, and 64 percent of Americans are currently feeling stress over their financial situation.
Eighty percent of US households' running out of spare money '
In addition, according to Bloomberg website reported on the 25th, the Federal Reserve's latest study on the financial situation of US households shows that 80% of US households have "no spare money" and their cash accumulation is less than before the outbreak of the new coronavirus.
The Federal Reserve Bank of San Francisco said households' "excess savings" of recent years were likely to be exhausted in the third quarter of this year.
Analysts have warned that the US economy could face downward pressure as households have less spare cash on hand.
Source CCTV news client, public information and market data