It was a mixed day on Wall Street but perhaps more alarming was a report by world renowned French bank- Societe Generale. The bank released its quarterly report that included concerns about the possibility of so-called “black swan” events that could harshly disrupt global economies.
“Risks to the world economy remain to the downside and include sharply weaker global growth and a sudden change to expectations regarding the U.S. Federal Reserve’s interest rate path.”
The term “black swan” is a metaphor for “surprise actions” that severely affect the world.
The bank forecasts these top economic risks, & how likely they are to happen:
- 40% chance of a “world recession due to uncertainty in the E.U.”
- 30% chance of an “economic crash in China”
- 25% chance of a “severe change in the Fed’s expectations”
- 20% chance of a “Sharply weaker global growth”
Read more here. See more below.
Here are the final numbers from Tuesday, May 31st on Wall Street:
Dow Jones Industrial Average: 17,787.13 (-86.09 / -0.48%)
NASDAQ: 4,948.06 (+14.55/ +0.29%)
S&P 500: 2,096.95 (-2.11/ -0.10%)