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Over 20 state economies are in or near recession, Moody's finds

1. 21 states plus DC are at recession risk, impacting U.S. GDP. 2. California and New York's economies are crucial for avoiding national downturn. 3. Federal Reserve remains concerned about inflation amid weak labor market. 4. Government shutdown delays September jobs report and CPI release. 5. Southern states show growth slowdown, contrasting with expanding economies elsewhere.

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FAQ

Why Bearish?

The risk of recession across significant states suggests likely economic slowdown, historically linked to S&P 500 declines.

How important is it?

With major economies at risk, investor confidence may decline significantly, impacting S&P 500 performance.

Why Short Term?

Immediate effects may emerge as data reveals economic health and job reports are delayed, influencing investor sentiment.

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