U.S. Economy Surges in Q2 2024: GDP Revised Up to 3.0%
Economic growth picked up in Q2 2024 as GDP was revised up to 3.0% from 2.8%. This marks a significant improvement from the 1.4% growth recorded in the first quarter. The stronger-than-expected performance was largely driven by increases in consumer spending, private inventory investment, and nonresidential fixed investment. However, this growth was partially offset by a downturn in residential fixed investment and higher imports, which subtract from GDP. (BEA.GOV)
Key Points
- Current-dollar GDP rose by 5.5% annually, reaching $28.65 trillion, with a $23.2 billion upward revision from the previous estimate.
- Price Indexes: The price index for gross domestic purchases increased by 2.4%, while the PCE price index rose by 2.5%.
- Personal Income: Grew by $233.6 billion, with the personal saving rate revised down to 3.3%, totaling $686.4 billion.
- Corporate Profits: Rebounded with a $57.6 billion increase, driven by gains in domestic financial and nonfinancial corporations, despite a decrease in profits from the rest of the world.
Market Metrics: Week and Month-End Summary
The S&P 500 closed up 0.15% for the week and ended the month with a 2% gain, recovering from an early month -7.56% drop. This recovery shows the current market’s resilience, as the index managed to bounce back nearly 9.5% from its early month low.
XAUUSD dipped -0.60% this week but finished the month with a 2.28% gain, achieving new all-time highs in the process. This continued performance reaffirms gold’s position as a trusted safe-haven asset during volatile times, with prices up over 20% this year.
EURUSD fell -1.29% after reaching above last week’s high, yet managed a solid 2.37% gain for the month. Interestingly, this marks the pair’s best monthly performance this year.
Key Levels on Our Radar Next Week:
S&P 500
After a week of steady accumulation in the S&P, a promising bull flag had formed, highlighted by a strong close on Friday. As we head into this week, we’ll be closely monitoring resistance levels to see if the market can break higher and challenge all-time highs. However, given August’s volatility and the significant rally we’ve already witnessed, it’s important to stay cautious. This accumulation range could persist, so it may be wise to avoid fully committing to a long bias just yet.
EURUSD
The EUR/USD pair saw significant movement last week, trading above the previous week’s high before facing a sharp rejection. We’ll be closely monitoring the two newly formed daily bearish FVGs and the recently broken low for signs of further downside, especially after last week’s failure to continue higher from the breached weekly level. That said, we’re also positioned within the golden retracement pocket of this current price leg and near the lower boundary of a strong support zone, presenting a potential buying opportunity for those who remain long biased.
XAUUSD
Similar to the S&P, XAU/USD experienced a period of accumulation last week, showing reluctance to challenge the current all-time high while forming a bullish flag pattern. With this setup, we’ll continue to monitor the same key levels as last week, anticipating potential upside movement.
