ACTV - This Week's GDP And PCE Reports May Bring More Pain To The Market
2024-04-21 06:15:00 ET
Summary
- First quarter GDP and March PCE reports could lead to higher rates, a stronger dollar, and a decline in the stock market.
- Anecdotal evidence suggests that the estimates for GDP and PCE may be too low, indicating potential upside surprises.
- Stronger data could reduce expectations of rate cuts and lead to a tightening of financial conditions, impacting volatility and credit spreads.
Two significant economic reports on Thursday and Friday — the first quarter GDP and the March PCE report — could blindside the market, sending rates and the dollar soaring, and the stock market reeling. Better-than-expected reports can push 2-year rates back to 5.25%, potentially wiping out any hopes of rate cuts in 2024. They could also have put murmurs of rate hikes back into the conversation....
This Week's GDP And PCE Reports May Bring More Pain To The Market