InvestorQ : What do you see the outcome of US GDP contracting so sharply in Jun-20 quarter?
diksha shah made post

What do you see the outcome of US GDP contracting so sharply in Jun-20 quarter?

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Moii Chavate answered.
12 months ago
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It was one of the sharpest GDP contractions in the history of the US economy. Oil prices tanked on Thursday and the Dow opened with a huge gap down after the US GDP contracted by -32.9% for the Jun-20 quarter. The last time, the US economy had seen serious negative growth was in 1958, when it had contracted by -10%.

This de-growth in the US economy was worse than street estimates as capital investments, jobs and consumption demand took a big hit. Just a day earlier, the US Federal Reserve held status quo on rates and promised a relentless flow of liquidity. The massive US de-growth is a signal of how serious the problem is with the US and also indicative that the pain could be deeper and much more long lasting. Next few quarters could be critical.

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