Surprise Q2 GDP Growth, Inflation Eases — 'Economy Is Much Stronger Than People Realize': 7 ETFs On The Move
Portfolio Pulse from Piero Cingari
The U.S. GDP grew by 2.8% in Q2, surpassing estimates, while inflation eased. Despite strong economic performance, market expectations for Federal Reserve rate cuts remain unchanged. U.S. equity futures turned positive, and several ETFs saw significant premarket moves.
July 25, 2024 | 1:27 pm
News sentiment analysis
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NEGATIVE IMPACT
The SPDR Gold Trust (GLD) fell 1.2% in premarket trading despite the positive GDP report.
Gold often declines when the economy is strong as investors move towards riskier assets.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The iShares Silver Trust (SLV) dropped 4.5% in premarket trading despite the positive GDP report.
Silver, like gold, often declines when the economy is strong as investors move towards riskier assets.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares Bitcoin Trust (IBIT) rose 2.4% in premarket trading following the positive GDP report.
Bitcoin and related assets can benefit from a stronger economy as investors seek higher returns.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) increased by 0.6% in premarket trading due to the robust GDP growth.
Small-cap stocks, represented by the Russell 2000, tend to perform well in a strong economic environment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.9% in premarket trading following the positive GDP report.
The positive GDP report suggests a stronger economy, which can lead to higher interest rates, benefiting long-term treasury bonds.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Financials Select Sector SPDR Fund (XLF) increased by 0.5% in premarket trading due to the robust GDP growth.
Financials benefit from a stronger economy as it can lead to increased lending and investment activities.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Utilities Select Sector SPDR Fund (XLU) rose 0.5% in premarket trading after the positive GDP report.
Utilities are seen as a safe investment, and a stronger economy can lead to increased demand for utility services.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70