How Does The Gdp Affect The Us Economy

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The US economy is made up of approximately 2/3 (68.7% to be exact) by consumer spending. Therefore, any significant change in GDP usually has a substantial effect on the stock market. When an economy is healthy and expanding, it is anticipated that businesses will report better earnings and growth. This will create a positive effect for the US stock markets in a bullish manner. At the same time, lower GDP measurements can have the opposite effect on stock prices as businesses begin to suffer. This lower GDP will have a negative effect on the US stock market in a bearish manner.
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