On Monday, US stocks experienced a significant decline following concerning data about the economy. The Dow dropped 300 points, or 0.8%, while the S&P 500 fell 0.3% and the Nasdaq Composite increased by 0.1%. Despite this, major stock indexes notched their sixth winning month in seven in May. However, recent data on inflation and economic growth has not been entirely positive. The Personal Consumption Expenditures price index and GDP data both revealed stubbornly high inflation and weaker economic expansion than previously estimated. While some believe a recession is not imminent, the economy is undergoing a period of normalization.
Investors are now reacting with fear to softer data, as opposed to cheering it for potential Fed policy loosening. Concerns about high inflation persist as the economy slows down, leading to worries that the Federal Reserve will maintain higher interest rates longer than expected. Recent news also revealed a technical issue that briefly halted trading on the New York Stock Exchange was resolved on Monday, but this story is still developing and updates will be provided in due course. Matt Egan from CNN contributed to this report. To receive more CNN news and newsletters, you can create an account at CNN.com
