Why the Latest GDP Report is Pivotal to the Market and the Fed | Market Takes

After two consecutive quarters of negative economic growth, the third quarter GDP report provides some clarity on the economy and the health of the U.S. consumer in 2022. Inflation remains elevated but retail sales are slowing and business activity is straining.

Investors know that the Federal Reserve is committed to slowing down economic demand to slow inflation. So, how does this report impact markets going forward? I’ll explain.

0:00 Welcome
2:15 Diving into the headline numbers on the third quarter GDP report
3:55 Why a strong GDP report may not be good news for investors
4:34 How the Q3 GDP report impacts the recession debate
5:49 The market reaction to the latest GDP report
8:10 Why the market was worried about too much growth
9:22 The key detail in the GDP report that likely moved the market most
10:42 How the GDP report suggests higher likelihood of a soft landing
12:08 The big takeaway from the GDP report
12:53 What to watch for next
14:03 What’s on the next Market Takes

Market Takes is a stripped-down and straight-up livestream where I'll cut through the noise and break down the week's most important market trends, reports and economic data. Tune in to understand what will be moving markets each week and why.

I’m Dion Rabouin, a WSJ reporter covering markets and the economy. I’ll be diving into all things finance, from the popular and well-known — like crypto and stocks — to the complex and intricate — like leveraged loans, derivatives and private equity. Subscribe to join me as I take a deep dive into what’s making money move and why it matters.

#GDP #Economy #DionRabouin

[DionRabouinWSJ]

After the Q3 GDP report, what do you expect to see from the Federal Reserve next week?

[ezio_auditore]

I like this guy WSJ give him a raise. Always breaks things down very well and sounds human while doing it

[agentjacob]

I'm a very concentrated investor but sometimes there is value in adding a small new position, focusing on something new provides a productive distraction from overthinking what you already own. It allows you and your portfolio to breathe a little bit cause we can't continue depending on the Fed, the markets are been propped up by the Fed printing money with no limit. Every time the market blips down the Fed dumps cash into the dip.

[amashakyawijayasundara]

Im a 2nd year financial engineering student in south asia. My ambithion to reach w. Street. Thank you for sharing your knowladge. ❤

[WhiteOwls]

So happy about the chart! Would love to see you show more charts in the future.

[georgesanchez]

Been reading WSJ for years and never cared to follow any individual journalist. That is, until I found Dion.

[DwellWithMe]

Another concise & revealing take, especially your coverage on the impact of GDP deflator. Boom this is how it’s done, Ty !

[AmolGautam]

Thank you, this is very detailed analysis.

[thenewwayhome]

Wouldn't say that we're completely out of the woods, but it's starting to look like we're finally seeing a ceiling to where the rates are heading. All eyes are on the PCE report today! Great info and update, Dion!

[notsodelusional]

Ty, for the clear explanation! You should consider a longer form video in the future. I need to resub to WSJ.

[makeniek]

Dion always good market analysis, keep it

[miken]

This GDP report is saying the US can handle higher interest rates without hurting growth.

[mitchell.]

As far as what I expect to see from the Federal Reserve is a seventy five basis points hike up.

Know of formally poor paying canvassing jobs in 2018 then paid twelve, paying eighteen earlier in this year, now pay between twenty-two and thirty an hour. Will be on the lookout for that report on wages.

[globemob]

Dion, keep doin what you doin brother.

[jpii]

They're going to raise .75 next week. This is a good news = bad news scenario.

[BH-plvg]

I don’t understand how this signals that the fed can slow down

[chocochef]

If the GDP grew in Q3 it’s good news for the economy, but for inflation?

[aymanraouf]

Something isnt clear on your analysis. When GDP improves, isnt this a precursor for the FED to raise interest again?