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Below the quote on the recent US GDP data announcement  Mr. Yogesh Kansal, Co-founder & CMO, Appreciate, a fintech platform for Savings and investment

“The US experienced GDP growth that surpassed initial expectations. This is causing a notable divergence in the performance of various sectors. Higher GDP growth is making technology sector investors uneasy, who fear that the Federal Reserve may delay potential rate decreases. Consequently, the prices of tech stocks have witnessed a decline.

Conversely, this surge in GDP growth has elicited satisfaction among investors in the consumer and automotive sectors. They anticipate increased revenues for companies within these industries due to the favorable economic conditions.

US GDP data also directly impacts the global markets. Emerging country stock markets, in particular, are likely to be adversely affected because an accelerated US GDP growth suggests an increased likelihood of the Federal Reserve maintaining a high funds rate. This, in turn, diminishes the Equity Risk Premium, contributing to the potential downturn in emerging market equities.”

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