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In the second quarter of 2023, US GDP grew at an annual rate of 2.1%, slightly below the revised 2.2% in the first quarter of the year. Notably, consumer spending was revised downward, but this was partially offset by upward revisions in non-residential fixed investment, exports and inventory investment. Meanwhile, imports decreased.

US GDP x investments

We can speculate that a better-than-expected GDP growth rate could lead to a positive near-term impact on the S&P 500. Investors may interpret strong economic growth as a sign of potential corporate earnings growth, which often correlates with higher share prices.

Source: Bea.gov