- Marktes
- S&P 500 -0.07%
- Dow Jones Industrial Average -0.4%
- NASDAQ -0.4%
- Russell 2000 +0.4%
U.S. equity markets finished the week down. U.S. paychecks are now outpacing inflation leading to increased purchasing power on the part of the consumer. However, the recent wage growth comes at a time when American credit card balances are rising. According to earnings reports from Bank Of America, JP Morgan, and the like, first quarter (2023) spending is up 10.5% from this time last year. The more consumers utilize high-rate debt to address needs, the less they have to spend on wants which the economy relies on. The Federal Reserve’s Beige Book confirmed expectations that the U.S. economy is slowing. The Beige Book is published eight times per year and highlights econmic conditions within each Federal Reserve Bank District. The report noted tightening lending standards and flat consumer spending. The data supports rate-hike pauses at the next Fed meeting in two weeks.