U.S. stocks edged lower as investors navigated a mix of rising oil prices, corporate earnings signals, and shifting expectations around Federal Reserve policy. The Dow, S&P 500, and Nasdaq all turned down after early gains, reflecting a market grappling with geopolitical tensions and inflation concerns. Indexes Pull Back All three major indexes slipped roughly between 0.3% and 0.6%, giving back some of the previous session’s momentum. The downturn followed renewed volatility in energy markets and cautious sentiment around consumer spending. Oil Prices Add Fresh Pressure Crude prices extended their sharp rally, driven by heightened worries over a potential U.S.–Iran conflict. Brent crude climbed above $71 per barrel, while West Texas Intermediate hovered near $66 — its biggest daily jump since October. Rising energy costs revived inflation concerns and weighed on equities. Walmart Earnings in Focus Walmart posted stronger‑than‑expected results, but its cautious pro...
“Me-cession”: When the Economy Grows, but Households Struggle
In a peculiar economic moment, Canada finds itself in what some economists are calling a “me-cession.” While the country’s overall economy continues to grow, individual households are facing challenges that make it feel like a recession for many Canadians.
Traditionally, economists define a recession as two consecutive quarters of negative growth in real gross domestic product (GDP), often accompanied by rising unemployment. However, Canada has managed to avoid a technical recession, even though its growth has been sluggish. So, what exactly is this “me-cession”?
Understanding the “Me-cession”
- Not Just Numbers: The term “me-cession” reflects the disconnect between macroeconomic indicators and the everyday experiences of Canadians. While GDP numbers may look positive, households are feeling the pinch.
- Stagnant Wages: Despite economic growth, wages have remained stagnant for many workers. As costs of living rise, families find it harder to make ends meet.
- Financial Stress: Polling data shows that 46% of Canadians are losing sleep over their finances. People are cutting back on dining out, delaying large purchases, and even putting off moving to cope with financial stress.
- Consumer Behavior: Businesses report consumers paring back spending, and households express feeling stressed. This behavioral shift contributes to the “me-cession” sentiment.
In summary, the “me-cession” highlights the gap between economic statistics and the lived experiences of Canadians. While the economy stays afloat, many households struggle to get ahead. It’s a reminder that economic well-being isn’t just about national GDP; it’s about the financial health of individuals and families.
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