Weaker than expected growth in the U.S. economy as highlighted in today’s Gross Domestic Product report has created strong reactions in the U.S. stock and bond markets. Both markets are focusing on the consumption piece of the report, which shows consumer spending slowed dramatically. Stock prices are falling while we see a significant rally in treasuries and mortgage bonds.
Two post GDP reports, the Chicago Purchasing Managers Index and University of Michigan Consumer Confidence reflected strength in certain areas of manufacturing, although these reports were not enough to overcome the effect of the GDP report.
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