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Stock futures fall – Recession fears rise, and J.P. Morgan CEO gives warning – PepsiCo to cut hundreds of jobs – 9 million Americans wrongly told they were approved for student debt forgiveness
Stock futures fell on Wednesday as traders voiced concerns over a potential recession, as well as the possibility of a longer-than-expected hiking cycle from the Federal Reserve, CNBC reported.
Futures for the Dow Jones industrial average slid 160 points, or 0.5%, while S&P 500 futures slipped 0.7%, and the technology-heavy Nasdaq composite futures traded lower by 1.1%, Yahoo Finance reported.
Oil traded near $74 per barrel after declining roughly 10% this week, which is the lowest level since January.
As of 9:43 AM EST, the benchmark 10-year US Treasury was down by -0.051 percent to yield at 3.46%.
Apple and Tesla stock slid after a stock market selloff.
JPMorgan CEO Jamie Dimon’s warning that the US economic recession could be triggered next year due to stubbornly high inflation, with steep prices causing consumer spending to dry up, FOXBusiness reported.
“Inflation is eroding everything I just said, and that $1.5 trillion will run out sometime mid-year next year,” Dimon said in an interview with CNBC. “When you are looking that forward, those things very well may derail the economy and cause this mild to severe recession that people are worried about.”
Dimon said policymakers could raise interest rates as high as 5% next year, and even “that may not be sufficient.”
“I don’t think we’ve seen that kind of turmoil in the global world for a long time,” Dimon added.
PepsiCo announced it is eliminating hundreds of corporate jobs in North America, with the company’s beverage unit expected to be hit harder by the cuts, according to the Wall Street Journal.
PepsiCo’s food and beverage businesses also include Gatorade drinks, Frito-Lay snacks, and Quaker Oats foods. The layoffs will affect employees in Chicago; Plano, Texas; and Purchase, New York. More than 40 percent of the company’s jobs are located in the US. In November, Coca-Cola said it plans to restructure its North American business through a voluntary separation program that included buyouts, CNBC reported.
Roughly 9 million Americans with student loans who had applied for the Biden administration’s student-debt relief program were wrongly told they were approved for student loan debt forgiveness. These people mistakenly received emails last month from the Department of Education that said their applications had been approved to receive debt forgiveness when in reality, the process was halted due to legal challenges, CBS reported, quoting officials familiar with the matter. Other Americans who hadn’t yet applied for student loan relief also received emails containing the error.
