The Clap
The GDP of the US grew 2.9% QoQ in Q3 2022, higher than the forecasted 2.7%, which pushed the Dow Jones Index, NASDAQ, and the S&P 500 up by around 2%, 4%, and 3% respectively.
What
The better than expected growth in GDP came as a result of increased consumer spending.
Despite the growth, however, the country is still at risk of a recession in the coming period.
So What
The better than expected growth for the economy shows its resilience in the face of aggressive interest rate hikes that aim to slowdown inflation and the economy.
Now What
The GDP report gives the Fed the go ahead to remain aggressive with their interest rate hikes.
