US Economy Expected To Grow 2.5% In Q1: Not 'A Hard Landing And Hardly A Soft One'
Portfolio Pulse from Piero Cingari
Wall Street analysts predict a 2.5% growth in U.S. GDP for Q1 2024, a deceleration from the previous quarters but still solid. Consumer spending is expected to slow to 2.8%, with the GDP price index anticipated to rise by 3%. Goldman Sachs forecasts a more optimistic 3.1% growth, citing factors like increased residential investment and auto production. A stronger-than-expected GDP could impact the U.S. dollar positively, while a lower figure might benefit bonds and gold. The SPDR S&P 500 ETF Trust (SPY) rose 0.5% on the last GDP release.
April 24, 2024 | 1:49 pm
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The SPDR S&P 500 ETF Trust (SPY) may see short-term price movements based on the upcoming GDP release, influenced by the broader market's reaction to the U.S. economic performance.
Given SPY's previous positive reaction to GDP data exceeding forecasts, a stronger-than-expected Q1 GDP could similarly uplift the ETF. Conversely, a disappointing GDP figure might lead to a temporary dip, reflecting broader market sentiment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75