The stock market is wrong: the economy will not yet “explode a joint”, warns an economist

While this year’s sharp sell-off in stocks might seem brutal, especially after September’s carnage, the S&P 500 remains about 17.1% above year-end 2019 levels, according to Dow Jones Market Data. That’s not low enough, given the likely scale of Federal Reserve actions needed to bring soaring inflation back to the central bank’s 2% annual target, … Read more

Is it a good time to buy Twitter shares? Financial advisers are treading cautiously as Elon Musk finally moves forward with his $44 billion offer.

The protracted storyline, like it or not, of Elon Musk’s bid for Twitter, which turned into a legal battle with the social media platform, took another big turn on Tuesday. He will buy the company after all – and at the original offering price of $44 billion, which equates to $54.20 per share. But retail … Read more

Quite a pivot: Ray Dalio has just reversed his long-standing position on this key asset class.

For years, Ray Dalio has made his contempt for money very clear. The founder and co-chief investment officer of Bridgewater Associates, the world’s largest hedge fund, told anyone who would listen that cash was trash, a point he repeated at MarketWatch’s “Best New Ideas In Money” just two weeks ago. Dalio said silver was still … Read more

Stocks and bonds are ‘discounted for disaster’ after worst period for investors in 20 years

Things could always get worse. The S&P 500 SPX index, -1.51% Friday cemented its worst monthly percentage decline since the March 2020 pandemic lockdowns, but also joined the Dow Jones Industrial Average DJIA, -1.71% and the Nasdaq COMP composite index, -1.51% booking the worst 9-month period since 2002, according to Dow Jones Market Data. “The … Read more

Micron cuts capital spending to stem ‘unprecedented’ oversupply cycle

Shares of Micron Technology Inc. fell slightly in Thursday’s extended session after the memory chipmaker said it was taking steps to exit a current “unprecedented” market down cycle by scaling back plans to Capacity Building. For the first fiscal quarter, Micron MU, based in Boise, Idaho, +1.50% said it expects an adjusted loss of 6 … Read more

Opinion: Micron earnings suggest chip downturn could be worse than Wall Street predicts

Micron Technology Inc. executives warned of a semiconductor slowdown in late June, but now say a “sharp and sudden” drop in demand has exceeded even those expectations, suggesting the current glut of chips could get worse. Micron MU, -1.94% reported a worse-than-expected fiscal fourth quarter on Thursday, with revenue down 23% from a year ago, … Read more

Crypto CEOs are quitting their jobs. here’s why

Hello, welcome to Distributed Ledger, our weekly crypto newsletter that hits your inbox every Thursday. I’m Frances Yue, crypto reporter at MarketWatch. I’m going to introduce you to the newest and greatest in the world of digital assets this week. Over the past few weeks, the CEOs of several major crypto companies have left their … Read more

The US economy contracted in the first half of 2022, confirms updated GDP

Numbers: The United States fell in the first six months of the year, revised government figures confirmed, and painted the picture of an economy rocked by strong headwinds and tailwinds. Gross domestic product, the official scorecard for the economy, fell to an annual level of 0.6% in the second quarter, the Bureau of Economic Analysis … Read more

‘We’re in big trouble’: Billionaire investor Druckenmiller believes Fed monetary tightening will push economy into recession in 2023

Billionaire investor Stanley Druckenmiller predicts a “hard landing” for the US economy by the end of 2023 as the Federal Reserve’s aggressive monetary tightening will lead to a recession. “I’d be amazed if we don’t have a recession in ’23. I don’t know when, but definitely by the end of ’23. I wouldn’t be surprised … Read more

UK bond yields plunge after Bank of England steps in to buy at ‘any scale necessary’

Yields on UK gilts fell to their highest level in 14 years after the Bank of England said it would buy bonds on “any scale necessary” to restore orderly market conditions. The yield of the TMBMKGB-10Y 10-year benchmark gilts, 4.013%, which is moving in the opposite direction to prices, fell 49 basis points to 4.03%, … Read more