Washington – Sherif Adel
Fears of a recession have once again reared their heads in the US economy, coinciding with a number of advanced technology companies announcing modest revenue and profitability expectations during the coming period. Most US stocks fell in trading on Friday, and the Dow Jones Industrial Average lost 366 points.
After two days of major declines, US stocks rose in the first trading on the last day of the week, before they were overshadowed by the rise in oil prices, which represents the greatest threat to the continuation of the largest economy in the world to achieve its high growth rates, and the price of Brent crude rose during Friday trading by more than 2.5%. %.
By the end of Friday trading, the decline points of the most famous index in the world represented 1.12% of its value at the beginning of the day, and the broader S&P 500 index lost 0.48% of its value, while the Nasdaq index was able to retain part of its gains, ending the day in The green zone, but with an increase that did not exceed 0.38%.
By the end of the week, the S&P 500 index was down 10.3% compared to its highest levels this year, which were recorded at the end of last July.
On the weekly level, the three indices were in the red zone, as the Dow Jones Industrial Average lost 2.1%, and the S&P 500 index fell by 2.5%, while the weekly loss in the Nasdaq index was 2.6%, in a week dominated by the announcement. About the business results of many major companies during the third quarter of the year.
The weekly declines came against the backdrop of pessimistic expectations for the revenues of the last quarter of the year for a number of companies, including Meta and Alphabet, the company that owns the famous search engine Google.
“We still have a fragile economic outlook,” said Dave Sekera, chief US market strategist at Morningstar. “So, while third-quarter GDP was unusually high, I think everyone still expects that the US economy will slow,” he said, adding: “The only question is: How much will it slow and how quickly?”
The US economy achieved growth beyond expectations during the third quarter of the year, supported by strong consumer spending, despite high interest rates, continuing inflation pressures, and a variety of growth obstacles, both locally and globally.
The US Department of Commerce said on Thursday that the US gross domestic product rose at an annual rate of 4.9% during the ending quarter, after growing during the previous quarter at a rate of 2.1%, noting that the sharp increase in the growth rate, despite analysts’ expectations of a slowdown in the US economy, It came due to continued strength in consumer spending, increased exports, real estate investment and government spending.
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