Connect with us

Hi, what are you looking for?

Investing

Here’s what a 2.9% growth in GDP means for the U.S. stocks

S&P 500 is trading slightly up on Thursday after the Bureau of Economic Analysis said the U.S. economy ended the final quarter of 2022 in good shape.

GDP growth beats expectations

According to the Commerce Department, gross domestic product grew at an annualised pace of 2.9% in the fourth quarter – slightly better than 2.8% that the economists had forecast.

In the prior quarter, though, the growth rate was a bit higher at 3.2%. Nonetheless, a bunch of other economic data also came in green this morning.

New home sales climbed to 616,000 in December versus 610,000 expected. Unemployment claims fell to the level last seen in April 2022 and the monthly durable goods report was also positive on Thursday.

For the year, the benchmark index is now up 6.0% year-to-date.

U.S. stocks could go further up

Based on the encouraging economic data, a Deutsche Bank analyst now expects the ongoing rally in the equities market to meaningfully extend further in the coming weeks.

Binky Chadha is not anticipating a recession in the first quarter. To that end, he expects the S&P 500 to hit the 4,500 level in that timeframe.

We view the rally as having further to go. While a number of leading indicators have fallen steeply, raising the alarm, there are several reasons for a continued pushing out of the timing of a potential recession.

Such reasons include strength of corporate balance sheets, insufficient layoffs, strong consumer, and pandemic-driven excess savings. He agrees that the market could tank nearly 20% from here once the recession hits but expects it to recover all the way back to 4,500 level again by year-end.

The post Here’s what a 2.9% growth in GDP means for the U.S. stocks appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Economy

    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...

    Economy

    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer: Thedailylaunch.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 Thedailylaunch.com. All Rights Reserved.