New York, Thursday, 28 July 2022
After a rocky start in which investors struggled to grasp how a disappointing GDP report might influence the Federal Reserve's rate-hike plan, all three major US stock indexes increased by approximately 0.5 percent on Thursday.
According to the GDP data released by the Commerce Department, the American economy unexpectedly contracted in the second quarter as rising inflation, interest rate increases, and ongoing supply chain difficulties put a strain on customers and businesses.
Such a reading was published the day after the Federal Reserve increased its key interest rate by 75 basis points, as was widely predicted, and hinted that the tightening process would slow down.
On the corporate front, Meta Platforms experienced a decline of approximately 6% following weak quarterly results. Following yet another significant impairment charge, Teladoc Health saw a 20% decline. Ford, on the other hand, rose 6% after pleasantly surprising investors.
(Source: Trading Economics // Edit and reporting by: The Decision Maker – Finance editors)