In a world that has been turned on its head, where bad news is good news as it means more monetary support from the Fed, substantial weakness in the U.S. economy was met by optimism on Wall Street. While the U.S. economy was supposed to be the bright star, outperforming its ailing peers, the third and final revision to first quarter GDP showed a meager 1.8% expansion in output, down dramatically from 2.4% previously. Investors rejoiced as the data suggests it will be highly unlikely for FOMC’s full-year GDP projection to be met, meaning QE tapering could be delayed further.
Source: Forbes. Read full article. (link)