On Friday, investors started to review their economic data while U.S. equities closed on lower values than usual. However, the month of April had a spectacular closure, with weak GDP data at the same time with a stock leverage of 1%.
The Dow, S&P, and Nasdaq Indexes Enjoyed Great Momentum
Goldman Sachs and Intel were the major players in a drastic fall in the Dow Jones index of around 40 points. The S&P 500 performed poorly as well with a 0.2% slip which telecommunications and financials triggered. As for Nasdaq, the index reached a refreshing record high only to climb down to lower positions by the end of the trading session.
However, all these three indexes showed a 1% advance in their monthly reports. Nasdaq had the most fruitful activity with record gains for the sixth month in a row. The Dow and the S&P fell closely behind with their fifth positive month over the past six months. On the other hand, gross domestic product increased only by 0.7%. Analysts expected at least a 1.2% positive momentum. Fewer business decisions in the investment domain, as well as fewer consumers spending, contributed to weak GDP data.
All three indexes were boosted to their full capacity over the course of this past week. The season of corporate earnings showed big numbers on behalf of some of the most powerful organizations in the world. As a consequence, on Monday and Tuesday, the stocks were described by major rebounds.
Weak GDP Data Undermined the Trump Administration
However, the feeble growth data are in stark contradiction with the promises made to the business sector by Trump administration. Donald Trump raised great support for his cause during presidential elections due to his intentions to boost growth significantly across America. The market is now in doubt whether the promised lower taxes would become a reality eventually. The portfolio manager at Hodges Capital Management, Gary Bradshaw, has already noticed the post-election rally going flat again.
“I think you’re going to have to see some (legislation) within the next couple of months, otherwise the market will become disenchanted.”
Even though the business sector propelled the market to new levels thanks to its strong earnings, it was the geopolitical tensions that kept indexes down. Investors considered a more careful attitude towards their strategies as international issues surmounted rapidly.
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