ASX Falls Despite Rising Wall Street Earnings

Streaming entertainment giants Netflix and United Airlines are due to report results on Tuesday. American Airlines, Union Pacific and American Express will report results later this week.

Corporate earnings are the latest information Wall Street can use to get a better picture of the economy amid stubborn inflation and growing fears of a recession. The Federal Reserve has been raising interest rates to make borrowing more difficult and slow economic growth. The goal is to brake the economy just enough to keep inflation under control, but this strategy risks slowing the economy too much and triggering a recession.

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“In the short term we have to endure some volatility, but inflation is falling,” Buchbinder said. “The Fed and market efforts have really improved the inflation outlook from here if we can look ahead three to six months.”

Inflation has declined in some areas of the economy, but remains high. This put the Fed on track with its plan to continue raising rates. The central bank has already raised its benchmark rate five times this year, and in the last three hikes he has raised his base rate by four quarters. Wall Street expects another three-quarters percent price hike at its next meeting in November.