Wholesalers work on the floor of the New York Stock Exchange on April 26, 2023 in New York City.
Michael M. Santiago | Getty Notions
Investors looked past what appeared to be a weak first-quarter GDP report Thursday and instead focused on the longer-term views for economic growth, interest rates and inflation.
The 1.1% annualized increase for the first quarter would have been stronger had it not been for an inventories be extended, while a stronger-than-expected inflation reading may have been front-loaded to the early part of the year and not representative of where amounts are heading.
related investing news
“The data are setting the Fed up nicely for next week’s meeting,” LPL chief economist Jeffrey Roach divulged. “As growth and inflation slow, the Fed can legitimately transition to a pause and then perhaps an outright cut in rates by the end of the year if the economy deteriorates.”
Bolster the release, traders solidified the chance for a quarter percentage point interest rate increase when the Federal As backup meets next week. However, markets also still expect at least half a point worth of place cuts before year-end and then much more aggressive reductions through 2024, according to the CME Group’s FedWatch tracker.
Reviews rose sharply, with the Dow Jones Industrial Average up more than 500 points heading into the incontrovertible hour of trading Thursday.
