News & Analysis / Analysis / Market Analysis: Stock Market Reaction to US GDP News

Market Analysis: Stock Market Reaction to US GDP News

FXOpen

According to data released yesterday, the US economy is growing at a stronger pace than expected. Thus, US GDP in the 3rd quarter increased by 5.3% in annual terms (an increase of 4.9% was expected).

Combined with softening rhetoric from the Federal Reserve, this is a positive signal for US stock markets, which have shown impressive performance: in November, the S&P 500 and Nasdaq Composite indices rose by 8.5% and 11%, respectively (the final figure will be known later, since today – last day of the month), which is the best month since July 2022.

Against the background of this news, the S&P 500 index yesterday rose closer to the highs of the year. However, the chart shows that the November rally may not continue into December. Note:

→ Most of November's progress was achieved in the first half of the month. In the second half, growth slowed down, as evidenced by the change in the angle of inclination of the purple channel relative to the blue channel.

→ Level 4,575 effectively provides resistance.

→ After the formation of yesterday’s top (against the backdrop of news), sellers were able to sharply lower the price - thus forming a false breakout of the 4575 level.

Of course, the upward trend has not yet been formally broken - the market may find support from the median line of the ascending channel and then try to set the year's high for the S&P 500. But it seems that the price is already taking into account all possible positive influence factors. And if any negative factors arrive, this will lead to a correction in November growth.

By the way, JP Morgan analysts released their forecast that the price of the S&P 500 will fall to 4200 next year amid a “challenging macroeconomic backdrop.”

Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.09654
1.09665
Trade
GBPUSD
1.28892
1.28919
Trade
AUDUSD
0.60440
0.60452
Trade
USDJPY
146.854
146.884
Trade
USDCAD
1.42236
1.42291
Trade
More
Index CFD Trading with FXOpen

Index CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Trade with tight spreads
  • Take advantage of zero commission
  • Choose from 4 trading platforms: MT4, MT5, TradingView, or TickTrader
Learn more

Latest articles

Cryptocurrencies

BTC/USD Analysis: Bitcoin Price at a Critical Support Level

In our 28 January report, "Bitcoin Price Holds Above $100k. For Now?", we highlighted the heightened volatility surrounding Trump’s inauguration. We speculated that major market players might have capitalized on this surge to lock in profits from long positions,

Analytical NVIDIA Stock Forecasts for the Rest of 2024, 2025 – 2030, and Beyond
Trader’s Tools

Analytical NVIDIA Stock Price Predictions for 2025-2030 and Beyond

NVIDIA has become a dominant force in technology, driving innovation in AI, data centres, and next-generation computing. Its stock has seen substantial growth, becoming a key player for investors to watch closely.

This article breaks down NVIDIA’s stock forecasts

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond
Trader’s Tools

Analytical Tesla Stock Predictions for 2025 – 2030 and Beyond

Tesla has been at the forefront of the electric vehicle revolution, capturing the imagination of investors and the general public alike since the launch of the Roadster in 2008. From the debut of the Model S to the unveiling of

Les CFD sont des instruments complexes. En raison de l'effet de levier, ils comportent un risque élevé de perte d'argent rapide.Les CFD sont des instruments complexes. En raison de l'effet de levier, ils comportent un risque élevé de perte d'argent rapide. 72.81% des comptes d'investisseurs particuliers perdent de l'argent lors de la négociation de CFD avec ce fournisseur. Veillez à bien considérer votre compréhension du fonctionnement des CFD, et votre capacité à supporter le risque de perdre votre argent.