Sizzling Q3 GDP Defies Recession Forecasts, But Interest Rate Hike Warnings Are Dragging US Stock Performance
Portfolio Pulse from Piero Cingari
The US economy has shown its strongest quarterly performance since Q4 2021, with a 4.9% QoQ annualized growth rate in Q3, surpassing market expectations of 4.3%. Despite the Federal Reserve's intention to slow consumer spending by raising interest rates, consumers continued to boost spending in Q3. However, there are concerns that the Fed might indicate the need for rate increases by the end of the year if inflation persists. This news has negatively impacted the US stock market, with the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust falling 0.2% and 0.7% respectively. The 'magnificent seven' basket, including Apple, Microsoft, Alphabet, Amazon, Meta Platforms, NVIDIA, and Tesla, fell 1.4%.
October 26, 2023 | 3:32 pm
News sentiment analysis
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NEGATIVE IMPACT
Apple's stock fell as part of the 'magnificent seven' basket following the news of strong Q3 GDP growth and potential interest rate hikes.
The strong Q3 GDP growth and potential interest rate hikes have led to uncertainty in the market, causing a decline in Apple's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Amazon's stock fell as part of the 'magnificent seven' basket following the news of strong Q3 GDP growth and potential interest rate hikes.
The strong Q3 GDP growth and potential interest rate hikes have led to uncertainty in the market, causing a decline in Amazon's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Alphabet's stock fell as part of the 'magnificent seven' basket following the news of strong Q3 GDP growth and potential interest rate hikes.
The strong Q3 GDP growth and potential interest rate hikes have led to uncertainty in the market, causing a decline in Alphabet's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Meta Platforms' stock fell as part of the 'magnificent seven' basket following the news of strong Q3 GDP growth and potential interest rate hikes.
The strong Q3 GDP growth and potential interest rate hikes have led to uncertainty in the market, causing a decline in Meta Platforms' stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Microsoft's stock fell as part of the 'magnificent seven' basket following the news of strong Q3 GDP growth and potential interest rate hikes.
The strong Q3 GDP growth and potential interest rate hikes have led to uncertainty in the market, causing a decline in Microsoft's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
NVIDIA's stock fell as part of the 'magnificent seven' basket following the news of strong Q3 GDP growth and potential interest rate hikes.
The strong Q3 GDP growth and potential interest rate hikes have led to uncertainty in the market, causing a decline in NVIDIA's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Invesco QQQ Trust fell 0.7% following the news of strong Q3 GDP growth and potential interest rate hikes.
The strong Q3 GDP growth and potential interest rate hikes have led to uncertainty in the market, causing a decline in the Invesco QQQ Trust.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust fell 0.2% following the news of strong Q3 GDP growth and potential interest rate hikes.
The strong Q3 GDP growth and potential interest rate hikes have led to uncertainty in the market, causing a decline in the SPDR S&P 500 ETF Trust.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Tesla's stock fell as part of the 'magnificent seven' basket following the news of strong Q3 GDP growth and potential interest rate hikes.
The strong Q3 GDP growth and potential interest rate hikes have led to uncertainty in the market, causing a decline in Tesla's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100