NEW YORK: Wall Street stocks were essentially flat early Tuesday following a World Bank forecast for anemic global growth, as markets ponder upcoming key central bank decisions.
The World Bank pointed to the effects of high inflation, rising interest rates and Russia’s invasion of Ukraine in sharply trimming its global growth forecast.
The forecast points to a “sharp, long-lasting slowdown” with growth pegged at 1.7 percent, roughly half the pace it predicted in June, said the bank’s latest Global Economic Prospects report.
World Bank cuts 2023 global growth to 1.7% in ‘sharp, long-lasting slowdown’
US stocks had surged Friday after mixed economic data fueled hopes of a Federal Reserve pivot away from aggressive interest rate hikes.
But investors are unsure if the Fed will shift course. The yield on the 10-year US Treasury note rose early Tuesday.
About 20 minutes into trading, the Dow Jones Industrial Average was up 0.1 percent at 33,546.94.
The broad-based S&P 500 was flat at 3,892.47, while the tech-rich Nasdaq Composite Index was up slightly at 10,639.18.
Among individual companies, Coinbase rose 1.0 percent as it announced it was cutting 950 positions, about 20 percent of its workforce following the downturn in the cryptocurrency markets.
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