Goldman Sachs Cuts U.S. Recession Odds to 25% on Strong Labor Market
After calling for a recession during the first half of last year and then for much of the latter half saying one was likely in 2023,
some in the financial community are now reversing course.
Wall Street titan Goldman Sachs, already an outlier with forecasts of a low probability of a recession, further downgraded the odds of a recession within the next 12 months to 25% from its prior 35% on Monday. The revision came after the government reported on Friday that the economy added 517,000 jobs in January, nearly three times the number that had been forecast.
Adding to the optimism was last week's Friday’s report from Institute for Supply Management that its services sector index improved to 55.2 last month, after having fallen to 49.2 in December.
While Goldman has been among the most bullish on the odds of a recession, the Bloomberg survey of economists last month pegged the likelihood of one occurring this year at about 70% – but that was down from 100% in October.
SME IPO: Sealmatic India's Initial Public Offering (IPO) Subscribed by 45% on the First Day.
The issue received strong demand from retail investors.
Inflation Cooled Just Slightly, With Worrying Details
Inflation has slowed from its painful 2022 peak but remains uncomfortably rapid, data released Tuesday showed, and the forces pushing prices higher are proving stubborn in ways that could make it difficult to wrestle cost increases back to the Federal Reserve’s goal.
S&P Global: Strong Hints at Impending Stock Price Recovery
S&P Global (NYSE:SPGI) has been one of the best compounders in the past decade, with its share price up over 750% during the period, comfortably beating the return of the S&P 500 index.
