Morning View
In the US, GDP fell -0.5% in Q1 2025
International
The final US Gross Domestic Product (GDP) data for Q1 2025 was released yesterday. The fall was -0.5% annualised, down from the -0.2% expected, which had been published in the previous revision. The difference is mainly due to a larger fall in Consumer Spending, which grew +0.5% annualised in the quarter, down from the +1.2% previously estimated.
In this context, US Treasury yields compressed again yesterday. The 1-year bond closed at 3.96%, down from 3.98%, while the 3-year bond closed at 3.68% from 3.74%. The yield on the 10-year bond closed yesterday at 4.24%, down from 4.28% previously.
Finally, US equity indices showed widespread gains. The S&P 500 rose +0.8%, and is again very close to its all-time high reached in February. The Nasdaq also rose +1% and the Dow Jones +0.9%. Thus, this year the indices accumulated gains of +4.4% in the case of the S&P 500 and the Nasdaq, and +2% for the Dow Jones.
Fuente: PUENTE Hnos, Bloomberg
US equity indices ended Wednesday's trading session neutral.
International
Major US equity indices ended neutral at the mid-week. The S&P 500 closed unchanged from Tuesday, while the Nasdaq gained +0.3% and the Dow Jones declined -0.2%. So far in 2025, they are up +3.6%, +3.4% and +1%, respectively.
US Treasury yields compressed again in the last trading session. The 1-year bond closed at 3.98%, down from 4% on Tuesday, while the 3-year bond fell to 3.74% from 3.76%. The yield on the 10-year bond was 4.28% at yesterday's close, down from 4.30% previously.
The US GDP (Gross Domestic Product) data will be released today. This is the final release of the data, which is expected to show a fall in activity of -0.2% annualised for Q1 2025. This fall is partly explained by the high level of imports during the period, in the face of tariff announcements by President Donald Trump.
Fuente: PUENTE Hnos, Bloomberg
