US Q2 GDP Shows 2nd Quarter of Negative Growth

(7/28/22 - Reuters)

NEW YORK, July 28 (Reuters) - The U.S. economy contracted again in the second quarter amid aggressive monetary policy tightening from the Federal Reserve to combat high inflation, which could fan financial market fears that the economy was already in recession.

Gross domestic product fell at a 0.9% annualized rate last quarter, the Commerce Department said in its advance estimate of GDP on Thursday. Economists polled by Reuters had forecast GDP rebounding at a 0.5% rate. 

MARKET REACTION:

STOCKS: S&P 500 futures were down 0.1%, pointing to a flat open on Wall Street

BONDS: U.S. 10-year yields fell to 2.7176%; Two-year yields fell to 2.8966%

FOREX: The dollar index pared a gain to 0.18%