THIS IS WHY THE MARKET IS DECLINING

Blotienso · 2026-02-20T15:42:50+00:00

The U.S. GDP growth for Q4 was only 1.4%, well below the expected 3%, marking the poorest performance since Q1 2025. Simultaneously, inflation indicators like the PCE and Core PCE rose above expectations, indicating a troubling economic situation with reduced earnings and increased costs for consumers. This trend, coupled with a weak job market, signals a potential economic recession.

Blotienso

2026-02-20 15:42:50

Abstract generation in progress

US Q4 GDP grew by 1.4% compared to the expected 3%.
This is the worst growth rate since Q1 2025.
The US Personal Consumption Expenditures (PCE) index reached 2.9% compared to the expected 2.8%.
This is the highest PCE level since March 2024.
The US Core PCE index reached 3% compared to the expected 2.9%.
This is the highest Core PCE since April 2024.
In summary, GDP is shrinking while inflation is soaring.
This means people are earning less and paying more, which is a bad situation for the economy.
Additionally, the downward trend in GDP along with a weak labor market is a leading sign of an economic recession, and that’s why everything is being dragged down.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes