Will GDP News Turbocharge Market Today?
Throughout the week, traders and analysts have suggested that the ongoing stock market rally (over the past two weeks, S&P 500 is up 7 percent, the Nasdaq is up 8 percent, the Dow is up 9 percent) is in the hands of today’s quarterly report on gross domestic product. Well, GDP came out this morning and it showed that GDP shrank at a rate of only 1 percent in the second quarter of this year, compared with a whopping 6.4 percent decline in the first quarter. The news suggests the recession is abating. Especially since the figure beat estimates; forecasters expected a 1.5 percent decline. Let’s see how the market responds. It’s opening now.
