US GDP Growth In Q3 Tops Expectations, Highest Since Q4 2021
Portfolio Pulse from Piero Cingari
The U.S. GDP growth for Q3 2023 was revised upward to 5.2%, exceeding initial estimates and marking the strongest expansion since Q4 2021. The revision was due to better-than-expected nonresidential investment, residential investment, private inventories, and government spending. Consumer spending and exports also contributed to the growth, although at a slightly moderated pace. The U.S. dollar index, tracked by Invesco DB USD Index Bullish Fund (UUP), saw a positive reaction, while Treasury yields remained stable, as indicated by the US 10 Year Treasury Note ETF (UTEN). Market participants anticipate a potential Fed rate cut by May 2024.
November 29, 2023 | 2:41 pm
News sentiment analysis
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POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund (UUP) saw a positive reaction to the upward revision of U.S. GDP growth figures for Q3 2023.
The positive GDP growth figures suggest a stronger U.S. economy, which typically bolsters the value of the dollar. As UUP tracks the dollar index, this news is likely to have a favorable impact on the ETF in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The US 10 Year Treasury Note ETF (UTEN) remained stable despite the positive GDP growth report, with yields trading at 4.30%.
Treasury yields often react to economic growth data, but in this case, the yields have remained stable as indicated by UTEN. This suggests a neutral short-term impact on the ETF, as the market may have already priced in the growth data or is waiting for further cues from the Fed.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70