Finder makes money from featured partners, but editorial opinions are our own.

S&P 500 rises on strong GDP figures

Posted:
News
Stock line up_Pixabay_1800x1000

US stocks rose as investors shake off fears of a recession during Thursday's trading period.

It was another strong day for investors.

The S&P 500 rose during Thursday's trading with most notably Tesla showing strong signs of growth, even with fears that much of the western world could go into a recession.

Thursday's trading saw the S&P 500 gain another 1.10% and is now up 3.87% during the last 5 days of trading.

Unsurprisingly the tech heavy Nasdaq composite outperformed, rising by 1.76%, largely thanks to the size of Tesla on the index.

Shares in the EV company rose by 11% during last night's trading period as Elon Musk's car company is set to produce 2 million vehicles for the year.

Markets shake off fears of a recession

Despite fears of a recession, official data by the US commerce department shows the US economy actually beating expectations.

During the fourth-quarter gross domestic product (GDP) or the sum of goods and services produced between October and December, rose 2.9% on an annualised basis.

This was slightly stronger than the market was expecting.

Consumer spending, which in the US accounts for nearly 70% of GDP was up 2.3% over the quarter, raising hopes for the US's economy having a soft landing.

This improving result makes eToro's US investment analyst Callie Cox believe the US could avoid a recession.

"Consumer spending is still strong, both domestically and globally," she says.

"It's hard to have a recession when demand is this resilient, and that's good news for a market that's worried about the future of the economy."

But the investment analysis says the high price of houses and rising cost of debt is a stain on the economy.

"Housing demand declined for a seventh straight quarter, which isn't a surprise given how aggressive the Fed has been," Cox continues.

"Housing market weakness is a huge risk, but the pessimism in housing clearly hasn't trickled into wallets yet."

Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances and obtain your own advice before making any trades.
Image: Pixabay

Ask a Question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site