US GDP

The US economy shrank at a 0.5 per cent annual pace from January through March as President Donald Trump's trade wars disrupted business, the Commerce Department reported Thursday in an unexpected deterioration of earlier estimates. First-quarter growth was weighed down by a surge of imports as US companies, and households, rushed to buy foreign goods before Trump could impose tariffs on them. The Commerce Department previously estimated that the economy fell 0.2 per cent in the first quarter. Economists had forecast no change in the department's third and final estimate. The January-March drop in gross domestic product the nation's output of goods and services reversed a 2.4 per cent increase in the last three months of 2024 and marked the first time in three years that the economy contracted. Imports expanded 37.9 per cent, fastest since 2020, and pushed GDP down by nearly 4.7 percentage points. Consumer spending also slowed sharply, expanding just 0.5 per cent, down from a robu

The slight upward revision in GDP reflected stronger business investment and a greater accumulation of inventories. Federal government spending wasn't as much of a drag as originally reported

Moody's downgrades US rating: Analysts see IT sector taking longer-than-expected to yield returns. Investors, they believe, should brace for near-term pressure

Stock Market Today: At 6:50 AM, GIFT Nifty Futures were down 148 points at 22,536, hinting at a gap-down start

Back home, at 6:40 AM, GIFT Nifty futures indicated a strong start, up 71 points at 23,489

Gross domestic product increased at a 2.3 per cent annualized rate last quarter after accelerating at a 3.1 per cent pace in the July-September quarter

Early indicators pointed to a subdued start, with GIFT Nifty Futures trading 84 points lower at 23,934 at 6:55 AM

The Sensex closed at 80,234.08, gaining 230.02 points or 0.29 per cent, while the Nifty50 ended at 24,274.90, up 80.40 points or 0.33 per cent, on November 27

At 6:40 AM, GIFT Nifty futures were trading 11 points higher at 24,228, suggesting a flat to positive start for the Indian bourses

The latest Fitch Ratings report says that the long-term growth of India's IT services sector will be supported by client spending on digital transformation, cloud migration, and AI

Inflation and higher interest rates are forcing households to prioritise essentials and cut back on discretionary spending

The agency's estimates come amid a fierce political debate in Washington over the surge of migration at the US-Mexico border and what should be done to control it

Consumer spending advanced at a less-robust 3.6% rate, according to the government's second estimate of the figures issued Wednesday

The bank forecast earnings for companies in the benchmark index to rise 10% after factoring in a "mild short" recession and a 19% increase if US gross domestic product grows by 2%

There is little conflict between dollar domination and Indian success

Initial claims for state unemployment benefits dropped 26,000 to a seasonally adjusted 239,000 for the week ended June 25, the Labor Department said

CLOSING BELL: The S&P BSE Sensex, meanwhile, rallied 349 points to settle at 60,649

Moody's Analytics on Tuesday said India's domestic economy, rather than trade, is its primary engine of growth and the slowdown in economic activity late last year will only be temporary. The government data released last week showed India's gross domestic product (GDP) growth slowed to a three quarter low of 4.4 per cent in October-December,2022, mainly due to contraction in manufacturing and low private consumption expenditure. While the manufacturing sector contracted by 1.1 per cent, private consumption expenditure slowed to 2.1 per cent in the October-December quarter of current fiscal. In its report on emerging market outlook, Moody's Analytics said growth slowed substantially on a year-ago basis, with private consumption lagging overall GDP for the first time since the Delta wave of Covid-19 struck the economy in the second quarter of 2021. "Our take is that the slowdown late last year will be temporary and even salutary, helping to wring some of the demand-side pressures ou

CLOSING BELL: Sectorally, the Nifty Metal index plunged 3 per cent, dragged by Adani Enterprises, which tumbled nearly 5 per cent

US Fed will hold its meeting on January 31 and February 1 and announce the policy on February 2