‘Information-rich’ environment

US GDP accelerated to a stronger-than-expected 3.4% in Q3, driven by robust consumer spending and a significant surge in corporate investment, particularly in equipment. This marks the best quarterly growth in a year and outpaced consensus forecasts.

The Federal Reserve paused rate hikes, likely influenced by this economic strength, bond market movements, and the midterm elections. However, with inflation ticking up due to energy prices, we still anticipate two more quarter-point hikes in December and March. Corporate earnings and stock prices have shown resilience, but we foresee a potential correction ahead, driven by hawkish Fed sentiment, election uncertainty, and energy price impacts.