GDP Growth Rate Meets Analyst Estimates, Traders Stay Focused On Fed Policy Outlook

GDP Growth Rate Meets Analyst Estimates, Traders Stay Focused On Fed Policy Outlook

US GDP

Key Insights

GDP Growth Rate increased from 2% in the first quarter to 2.1% in the second quarter. 
GDP Price Index declined from 4.1% to 1.7%. 
Initial Jobless Claims grew from 202,000 to 204,000. 

On September 28, U.S. released the final reading of the second-quarter GDP Growth Rate report. The report indicated that GDP Growth Rate was 2.1%, in line with the analyst consensus.

GDP Price Index declined from 4.1% in the first quarter to 1.7% in the second quarter, compared to analyst consensus of 2%.

Today, traders also had a chance to take a look at the Initial Jobless Claims report, which indicated that 204,000 Americans filed for unemployment benefits in a week. Analysts expected Initial Jobless Claims of 215,000.

Continuing Jobless Claims increased from 1.66 million to 1.67 million, mostly in line with the analyst consensus.

Treasury yields tested new highs after the release of the GDP report. The report met analyst estimates and showed that U.S. economy remained in a decent shape, providing Fed with an opportunity to push rates even higher.

U.S. Dollar Index rebounded towards the 106.50 level as traders focused on rising Treasury yields.

Gold declined towards session lows near the $1870 level. Strong dollar and high Treasury yields are bearish for gold and other precious metals that pay no interest.

SP500  pulled back towards the 4270 level as traders reacted to rising Treasury yields. Fed policy outlook remains the key driver for markets. If traders continue to prepare for a potential rate hike, SP500 will remain under material pressure.

For a look at all of today’s economic events, check out our economic calendar.

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