1. Atlanta Fed forecasts 2.4% contraction in Q1 GDP, shocking officials. 2. Lutnick attributes economic struggles to previous conditions, calls for optimism ahead. 3. Interest, energy, and egg prices decline, showing signs of potential recovery. 4. Advanced GDP estimate scheduled for April 30 may confirm current forecasts.
A GDP contraction may signal recession risks, impacting investor confidence. Historical patterns show market downturns during economic contractions.
A GDP contraction directly influences market performance, particularly in the S&P 500. The likelihood of negative impacts on major companies within the index increases during economic downturns.
Immediate market reactions usually follow negative economic news; last year's downturns occurred swiftly. Predictions can influence market sentiment before actual numbers are released.