Last week all eyes were on the US economy and expecting the macroeconomic data to be disclosed. The result was more than anticipated.
Real gross domestic product (GDP) increased at an annual rate of 4.2 percent in the second quarter of 2018, according to the “third” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.2 percent. With this third estimate for the second quarter, the general picture of economic growth remains the same; a downward revision to private inventory investment was offset by small upward revisions to most other GDP components. Imports which are a subtraction in the calculation of GDP, were revised down slightly. For reference: GDP Growth Rate in the United States averaged 3.22 percent from 1947 until 2018, reaching an all-time high of 16.70 percent in the first quarter of 1950 and a record low of -10 percent in the first quarter of 1958.
The stock market was expecting growth but as it came in bigger numbers it fueled optimism and though Friday was a bit weak compared to the whole week Monday showed strong trade.
Dow Jones Industrial Average
Wall Street closed moderately in the green last week, as investors continue to digest an expected interest rate hike. Also, Apple shares rose 1.2% during the session nudged by J.P. Morgan analysts’ expectations of strong growth for Apple’s services offerings. The Dow Jones gained 55 points or 0.2% to 26440. The S&P 500 advanced 8 points or 0.3% to 2914. The Nasdaq climbed 52 points or 0.7% to 8042. Historically, the Dow Jones Industrial Average reached an all time high of 26743.50 in September of 2018 and a record low of 41.20 in July of 1932. Monday, October 1 rally almost reached the record high.