US Economy Grows 1.6% In Q1, Sharply Below Expectations As Price Pressures Weigh On Spending (CORRECTED)
Portfolio Pulse from Piero Cingari
The U.S. economy grew by 1.6% in Q1 2024, below the expected 2.5%, with inflation indicators like the Core PCE price index rising to 3.7%. The U.S. dollar index, as represented by UUP, slightly increased, while gold prices, tracked by GLD, rose by 0.5%. Meta Platforms Inc. (META) saw a 15% drop in premarket trading due to weak revenue guidance for Q2, impacting U.S. indices futures.
April 25, 2024 | 12:42 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
META's stock plummeted by 15% in premarket trading due to issuing weak revenue guidance for Q2, overshadowing its better-than-expected Q1 results.
META's significant premarket drop is a direct result of its disappointing revenue forecast for the upcoming quarter, which has a strong negative impact on investor sentiment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 90
POSITIVE IMPACT
GLD, representing gold prices, increased by 0.5% in response to the GDP report, likely due to investors seeking inflation hedges.
GLD's rise is attributed to gold being perceived as a safe haven against inflation, which is supported by the higher-than-expected Core PCE price index figures.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
UUP, tracking the U.S. dollar index, edged up 0.1% following the GDP announcement, reflecting a stronger dollar amidst higher-than-expected inflation figures.
The slight increase in UUP reflects immediate market reaction to the GDP data, suggesting a short-term bullish outlook for the dollar as inflation remains a concern.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80