US Q1 Economic Growth Downwardly Revised To 1.3%: Consumer Spending Falters
Portfolio Pulse from Piero Cingari
The U.S. economic growth for Q1 2024 was revised down to 1.3%, with consumer spending faltering. Inflation metrics were also slightly revised down. Corporate profits contracted, and jobless claims rose. Market reactions included lower equity futures and falling Treasury yields, while gold prices increased.
May 30, 2024 | 12:45 pm
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POSITIVE IMPACT
The SPDR Gold Trust (NYSE:GLD) rose 0.3% as investors sought safe-haven assets following the downward revision in GDP growth and rising jobless claims.
Economic uncertainty and weaker equity markets often drive investors to safe-haven assets like gold, benefiting GLD.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) saw a 0.7% decline on Wednesday and futures were 0.1% lower after the GDP revision and jobless claims data.
The downward revision in GDP growth and rising jobless claims indicate economic weakness, which negatively impacts equity markets, including SPY.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80