The ‘everyone wins’ stock market is dead: Jonathan Levin

Amid Target Corp.'s recent sales slump, fears of a US consumption downturn loom, sparking investor concerns about a looming recession. However, this softening, alongside heightened competition, could be the key to curbing inflation and fostering sustainable growth. Despite modest sales growth among S&P 500 companies, the market is witnessing a shift where firms vie for market share rather than solely focusing on price hikes. This evolution, while not without challenges, signals a healthier economic landscape and potential for prudent policy adjustments.

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By Jonathan Levin

Target Corp.'s sales slump last quarter marked the latest example of supposed softening in US consumption, making some stock-market investors jittery that recession could still be in the cards. But the slight moderation in demand — together with increased competition among firms — may be just what policymakers need to vanquish inflation and set the stage for more sustainable growth.

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