U.S. recession fears grow among consumers and CFOs

Fears of a U.S. recession are rising among consumers and chief financial officers (CFOs) as new surveys show growing concerns. The U.S. economy holds a crucial place in the global market, so any downturn would likely impact countries and companies worldwide. U.S. stock markets have seen slight gains recently, with the S&P 500 increasing by 0.16%, the Dow Jones Industrial Average rising by 0.01%, and the Nasdaq up by 0.46%. This marks three days of positive growth for all three indexes. Meanwhile, the European Stoxx 600 index rose by 0.67%, buoyed by improved business sentiment in Germany. However, consumer confidence in the U.S. is weakening. The Conference Board's latest index fell to 92.9, indicating a decline for the fourth month in a row. This reading is lower than expected and suggests that many people feel uncertain about the economy. According to a survey of CFOs, about 60% predict a U.S. recession later this year. A separate study from Deutsche Bank estimates a 43% chance of economic downturn over the next 12 months, based on responses from 400 participants. In the electric vehicle market, BYD, a Chinese company, reported annual revenue of 777 billion yuan (approximately $107 billion) for 2024, surpassing Tesla's revenue. BYD credits strong sales of hybrid vehicles for this growth. In Europe, software giant SAP has become the continent's most valuable company, overtaking Novo Nordisk. SAP's market value reached around $343.3 billion, thanks to a 40% rise in its stock over the past year. In further news, GameStop announced plans to buy bitcoin and stablecoins, causing its stock to spike by over 7% in after-hours trading. Tesla has also faced stock price challenges, with some analysts looking beyond CEO Elon Musk's political involvement as the main cause of its recent decline. Lastly, President Trump is urging U.S. oil producers to increase output, but experts see potential pushback from investors as oil prices remain low. The U.S. is currently producing an unprecedented amount of crude oil, setting new records in daily production.