Transportation Woes and Tech Gains: Split Stock Market Signals Economic Uncertainty
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Transportation stocks are underperforming the broader market in 2023, sparking concerns that the economy may be headed for a recession.
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Smaller US companies are also struggling, with the Russell 2000 index down 2.6% this year, another potential economic warning sign.
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The Fed signaled further interest rate hikes are likely, diminishing hopes for a "soft landing" for the economy.
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Big tech stocks continue to dominate the market's gains, with the "Magnificent Seven" powering nearly half the S&P 500's advance.
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Deutsche Bank announced 3,500 job cuts as it pushes ahead with a cost-cutting plan, though it reported a 16-year high in pre-tax profit for 2022.