Daily Trader: GDP Data Insights, What to Watch Before Weekend #shorts
Why It Matters
The combination of sticky core inflation, a downward GDP revision, elevated oil prices and higher yields heightens market volatility and could constrain equity performance and consumption, so investors should watch oil, yields and upcoming macro data for directional cues.
Summary
U.S. markets were slightly positive on the day but the S&P 500 is set for its third straight weekly loss, its longest skid in about a year. Oil slipped about 1% to just under $95 a barrel intraday but remains sharply higher this month and year-to-date, creating uncertainty for risk assets. Core PCE inflation came in hotter than expected at 3.1% year-over-year while headline PCE was 2.8%; the second read of Q4 GDP was revised down to 0.7% from an initial 1.4%. Rising 10-year yields, a firmer dollar and geopolitical risk in the Middle East are adding further headwinds for equities and consumer spending outlooks.
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