Fed Beige Book Shows Modest Economic Expansion Ahead Of Key GDP, Inflation Data Release
Portfolio Pulse from Piero Cingari
The Federal Reserve's latest Beige Book indicates modest economic expansion from April to mid-May, with mixed results across various sectors. Key upcoming data releases include the second estimate of Q1 GDP and the PCE price index. Wall Street showed no major reaction, but rising Treasury yields impacted investor sentiment, leading to declines in the iShares 20+ Year Treasury Bond ETF (TLT) and the SPDR S&P 500 ETF Trust (SPY).

May 29, 2024 | 7:53 pm
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NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) fell 0.6% as rising Treasury yields and the Fed Beige Book's modest economic outlook weighed on investor sentiment.
The modest economic expansion reported in the Beige Book and rising Treasury yields led to a decline in SPY, reflecting broader market sentiment.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) fell 1.3% following the release of the Fed Beige Book, as rising Treasury yields dampened investor sentiment.
The Beige Book's indication of modest economic expansion and upcoming key data releases led to a rise in Treasury yields, negatively impacting bond prices and causing TLT to decline.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80