Stock futures (^DJI,^GSPC, ^IXIC) are in the red as investors digest this month's Gross Domestic Product (GDP) report, which fell below estimates. CFRA...
) are in the red as investors digest this month's Gross Domestic Product report, which fell below estimates. CFRA Research Chief Investment Strategist Sam Stovall joins Morning Brief to discuss how this GDP print could affect the Federal Reserve 's next interest rate move.
Uh But certainly it was a bit of a uh encouragement in that Q one GDP growth came in, uh, slower than was originally estimated.Now, Atlanta fed, uh, looking for greater than 3% growth in the second quarter.I'm focusing in on some of the areas where there downward revisions here, whether that be the price index for gross domestic purchases uh or that be the current dollar personal income and then another one profits from current production.
So Sam, how is all this factor into your investment strategy and when we're talking about really what is going to be driving the equity markets in the near term?Uh A I is driving tech uh and uh the semiconductors, but E I earnings and inflation are driving the market. Uh I, I think it's at least the risk is back on the table though, remote, where, where does risk also lead to any rotation for investors who are trying to figure out once we do see the fed start its cutting cycle, how they should be positioned.Uh Whereas if it's not A I related, it was in the red.
Uh and the S and P 500 while the market itself was negative and all other sectors except communication services were in the red, even the defensive areas. So I I would tend to say that if we don't get a broadening of participation once again, uh then that we could be retesting the low that we saw on April 19th, Sam Stovall CFR, a Research Chief Investment strategist.
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