Market sentiment is negative as futures tracking US equity indices, including the Dow, declined on Friday. Economic data revealed a weaker-than-expected GDP growth rate and a surge in the PCE price index, increasing concerns about the economic outlook and potentially limiting the Federal Reserve’s ability to implement accommodative monetary policies. Specific stocks in the AI sector and lenders are also showing weakness.
- Dow futures were 0.3% lower.
- US GDP grew by an annualized 1.4% in Q4, below expectations.
- Stocks were pressured by a surge in the PCE price index and an overshoot in the core gauge.
The asset is facing downward pressure due to broader economic anxieties reflected in disappointing growth figures and inflationary pressures. This suggests a cautious outlook, as the potential for restrictive monetary policy and sector-specific weaknesses could further weigh on performance.