All articles tagged with #gdp data
U.S. Treasury yields slightly declined as investors considered strong Q3 GDP growth of 4.3%, which may influence the Federal Reserve's interest rate policy, with most expecting rates to stay steady until April. The bond market is preparing for holiday closures.
Wall Street's major averages ended with slight gains amid a bond rally triggered by weak GDP data and ongoing tariff discussions, with the S&P 500 erasing an earlier near-1% gain.
Former White House economic advisor Larry Kudlow admitted he was wrong to predict a recession under President Joe Biden, acknowledging that the US economy is faring better than expected. He suggested that Biden should boast about the new GDP data, which showed a 3.3% growth in the last quarter of 2023. This admission is significant as the state of the economy is likely to be a key factor in the upcoming presidential election, posing a challenge to Trump's campaign strategy. Additionally, recent figures revealed that the US economy added 353,000 jobs in January, exceeding economists' estimates.
Treasury yields slipped as investors processed strong GDP data and awaited inflation readings, with the 10-year yield falling to 4.1085%. The U.S. economy grew at a 3.3% annualized rate in Q4, surpassing expectations, while core inflation slowed to 2.7%. Investors are monitoring the data for clues on potential Fed interest rate cuts, with some economists still expecting an early rate cut despite the robust GDP growth.
US stocks were mixed as investors reacted to the possibility of the Federal Reserve cutting interest rates sooner than expected and revised data showing stronger-than-expected US economic growth in the third quarter. The Dow Jones Industrial Average ended slightly higher, while the S&P 500 and Nasdaq Composite both fell slightly. Interest rate-sensitive sectors, such as real estate and financials, led the gains. Investors are increasingly betting on an earlier interest rate cut by the Fed, with markets now pricing in a 78% chance of a cut by the end of May. GameStop stock soared over 20% as meme stocks and other speculative trades rebounded. General Motors stock also surged after announcing a $10 billion stock buyback plan and dividend increase.
US stocks were mixed as investors reacted to the possibility of the Federal Reserve cutting interest rates sooner than expected and revised data showing stronger-than-expected US economic growth in the third quarter. The Dow Jones Industrial Average ended slightly higher, while the S&P 500 and Nasdaq Composite both fell slightly. Interest rate-sensitive sectors, such as real estate and financials, led the gains. Investors are increasingly betting on an earlier interest rate cut by the Fed, with markets now pricing in a 78% chance of a cut by the end of May. GameStop stock soared over 20% as meme stocks and other speculative trades rebounded. General Motors stock also surged after announcing a $10 billion stock buyback plan and dividend increase.
The US dollar's strength is expected to be reinforced if the US GDP data for Q3 shows solid growth, potentially leading to a sharp decline in EUR/USD and AUD/USD. The US economy is forecasted to have grown by 4.3% in Q3, with some investment banks predicting an even stronger expansion above 5.0%. While a strong GDP print may not result in another Fed rate adjustment for 2023, it could reinforce expectations of a prolonged restrictive stance and higher interest rates, creating a favorable environment for the US dollar. Technical analysis suggests potential downside for EUR/USD and AUD/USD, with key support and resistance levels identified.
U.S. Treasury yields surged after the release of revised Q1 GDP data, which showed a 2% increase, surpassing the consensus of 1.4%. The U.S. 30-Year Treasury yield rose by 9 basis points to 3.89%, the U.S. 10-Year Treasury yield increased by 12 basis points to 3.83%, and the U.S. 2-Year Treasury yield jumped by 15 basis points to 4.87%. The inverted yield curve also widened, reaching levels not seen since 1981. The rise in yields pushed down U.S. Treasury bonds, while boosting the dollar.
Stock futures rose ahead of jobless claims and GDP data, with upbeat corporate updates and Federal Reserve hawkishness competing for investors' attention. Futures on the S&P 500 and Dow Jones Industrial Average were up about 0.3%, while Nasdaq Composite futures added around 0.4%. Strong numbers from Micron and successful US bank stress tests contributed to pre-market gains. Jobless claims ticked lower, signaling a tight labor market and potentially influencing the Fed's decision on interest rates.
Treasury prices fell after the latest US GDP data showed a deceleration in growth rate to 1.1% in the first quarter, below the seasonally adjusted increase of 2.6% in the 2022 fourth quarter, raising concerns about inflation and potential interest rate hikes.
Asian stocks weakened despite better-than-expected Chinese economic data as signs of patchiness in the country's recovery weighed on investor sentiment. China's economy grew 4.5% year-on-year for the first quarter, eclipsing the expectations of most economists. The mixed market performance was the result of some underlying Chinese data falling below expectations, despite the strong headline results. The better-than-expected data failed to fire up a sustained rally in regional equities.