US GDP to contract 34% in Q2 2020 – Goldman Sachs

While revising its forecast for the US real GDP, Goldman Sachs recently mentioned, “We now forecast real GDP growth of -9% in Q1 and -34% in Q2 in q/q annualized terms.” It’s worth mentioning that the bank earlier estimated -6.0% and -24.00% reductions in the economic output figures. Further, the bank anticipates the unemployment rate rising to 15% by midyear.

Market implications

The news exerts additional downside pressure on the market’s risk-tone following US President Donald Trump’s expectations of tough times. While portraying the sentiment, S&P 500 Futures drop near 0.90% to 2,540 by the press time.