GDP Growth: Accelerating or Decelerating?
The period you examine makes a relatively large difference in guessing what the economy's true trend is.
For most of the week, the U.S. stock market continued to seesaw, sometimes violently, but ended down a mere 0.4% (S&P 500) for the week. Even relatively strong GDP and consumption data for December didn't really help the market. The stabilization of emerging-market stock prices, which were virtually unchanged for the week, didn't put the U.S. markets in a better mood, either.
A report out of Europe on Friday suggested that inflation in Europe was a mere 0.7% recently, raising fears of deflation and Japanese-style malaise. Bonds also had another decent week, with 10-year U.S. Treasury bonds now yielding 2.67% after starting the year at close to 3%.
Robert Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.