Let’s explore the reason behind Dow fall on US GDP
- US GDP shrunk by 32.9% in second quarter as per expectation due to pandemic.
- US market expectation was 34% fall in GDP which means that the number is better than consensus.
- This resulted in Nasdaq to close in green territory.
- China reported better than expected manufacturing PMI data 51.1 above expectation of 50.7.
- Asian markets are lifted from lows and now trading in green zone (8.30 A.M.)
- SGX Nifty is in green note this morning. (8:30 A.M.)
Why Dow fall on US GDP data?
- US markets have not seen this kind of fall ever that is why the markets were down in early trading session but later recovered as the numbers were still better than expectation.
- Also now the loudness of $1 trillion by US government has gone up after dismal US GDP numbers. This package will add liquidity to the stock markets.
- This morning China has come out with manufacturing PMI data of 51.1 better than expectation 50.1 points and Asian markets are lifted due to this.