The recent Q1 GDP report showed a slight revision to a 0.2% contraction, but not all was positive. While consumer spending grew less than expected, it’s the resilience of consumers and business investment that will be crucial for maintaining market momentum.
Consumer spending accounted for two-thirds of the economy and grew just 1.2%, lower than the initial reading of 1.8%. However, government spending didn’t decline as much as initially thought, while business investment and a jump in inventories helped offset some weakness.
The main concern remains a slowdown in consumer spending, which could threaten the US economy’s avoidance of recession. But past data on consumer resilience during earnings calls suggests that investors will need this to continue if markets are to remain higher.
Source: https://www.moneyshow.com/articles/dailyguru-64059/whats-next-for-stocks-and-bitcoin-after-tariff-gdp-news