GDP better than expected despite fall in tech stocks



US economy, The US on Thursday revealed that gross domestic product (GDP) grew by 2.6% in the third quarter (Q3), the highest growth since the fourth quarter of 2021, after recording contraction for two consecutive quarters.

Despite GDP performance being better in Q3 than in 2022, Elon Musk said he expects the economy to struggle for some time, with the recession lasting until 2024.

US markets reacted positively to the news, but only the S&P 500 gained 0.59%. Bitcoin barely accepted the announcement, trading in the 1% zone around $20,600.

This comes against the backdrop of tremendous performance in the display technology sector. Meta this week is proving to be a big drag on the market. The tech giant posted quarterly results on Wednesday night, leaving shares down 22% on Thursday.

GDP boom a glimmer of optimism for the economy

Growth in US GDP is providing some optimism in an otherwise gloomy environment. America’s GDP grew 2.6% between July and September, performing better than most economists had predicted.

One reason for the reversal of US performance is thanks to trade, as weak consumer sentiment has dampened demand for imports.

This has caused some analysts to treat the latest figures with some degree of caution. Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania, was among those who found some cloudiness in the economy’s silver lining.

“The devil is in the details, and if you take the trade off, GDP will look much weaker than the headline numbers,” Sweet said. Reuters on Thursday. “Our baseline is not bearish, but the risks are rising – we need a little luck.”

Sweet isn’t the only commentator who still believes a recession is likely and that the GDP growth isn’t necessarily what everyone is hoping for.

Elon Musk talks about the US economy

Elon Musk is never shy about giving his opinion. On October 21, the Tesla founder was asked how long he had predicted a US recession.

Billionaire Musk reacted“Just guessing, but probably by the spring of ’24.”

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