MARKET NEWS: Dow sinks, Fed inflation gauge near 40-year high, Bitcoin hits $19,000
The Federal Reserve’s key GDP indicator turns negative, signaling that the recession is here
Skyrocketing infrastructure material prices jeopardize construction projects nationwide
FOX Business correspondent Lydia Hu analyzes the impact of rising costs on construction projects across America on ‘Varney & Co.’
Flight cancellations fuel protests by Delta pilots
Delta pilots are protesting across the country amid staff shortages and flight cancellations. FOX Business’ Lydia Hu with updates.
Democrats and environmentalists slam Supreme Court’s ‘catastrophic’ ruling limiting federal climate powers
Democrats and environmental groups quickly condemned the Supreme Court’s decision on Thursday for restricting federal regulatory powers related to climate issues.
The High Court has ruled that the Environmental Protection Agency (EPA) has limited powers to regulate emissions, adding that the agency exceeded its authority when it published a plan to restrict power plants electricity in 2015 under the Obama administration. Proponents of strict regulations, however, said the ruling would severely hamper the federal government’s efforts to prevent cataclysmic climate change.
Stocks end worst first half since 1970
US stocks fell sharply, with all three major averages falling more than 1% by the end of the last trading day of the second quarter. The S&P 500 is poised for the worst first half since the 1970s as inflation and recession fears scare investors. In commodities, oil hovered around $108 a barrel.
For the S&P 500, we are ending the worst first half since 1970.
Fed inflation gauge eases but remains near 40-year high
The Fed’s preferred measure of inflation, the core PCE, fell to 4.7% from 4.8%. Although this is the third consecutive month of slower growth, it remains near a 40-year high and consumer spending showed a worrying trend.
Stock futures plunge ahead of last trading day in June
U.S. equity futures were trading significantly lower heading into the last trading day of the first half of the year. This comes a day after the US economy contracted more than expected.
Spirit delays vote on Frontier deal
The drama involving the potential airline merger between Spirit Airlines and Frontier Group will drag on for at least a week.
Spirit shares are trading up 2% premarket. The airlines on Wednesday pushed back a shareholder vote on Frontier’s merger bid for the low-cost carrier until next week. Spirit shareholders were expected to finalize their vote at a special meeting on Thursday.
The fall in gasoline prices continues
The price of a gallon of regular gasoline slid Thursday morning to $4,857, according to AAA. The price on Wednesday was $4,868. The gas went down for 13 consecutive days. Diesel also slipped to $5.772 from $5.78.
Oil in choppy trade due to supply issues
Oil prices were choppy on Thursday as the market considered global supply concerns. U.S. West Texas Intermediate (WTI) crude futures were trading around $109 a barrel. Brent futures were at $115 a barrel.
Crude inventories fell 2.8 million barrels last week, beating analysts’ expectations.
Bitcoin below $20,000
Bitcoin is trading below $20,000 after falling for the three days leading up to Thursday. The cryptocurrency is down more than 5% over this period.
Bitcoin is down more than 36% since the beginning of the month and more than 56% since the beginning of the year. Bitcoin is also down more than 70% from its November high.
Ether is at $1,000. Dogecoin is 6 cents.