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Could a deeper-than-expected GDP contraction (-0.5%) trigger a sell-off in the U.S. stock market?

The U.S. economy contracted more than expected in Q1, with final GDP revised to -0.5% (vs. -0.2% forecast). This sharp downgrade raises key concerns. Negative scenarios to watch: 🔻 Rising recession risk if Q2 GDP (to be released on July 25, 2025) also shows negative growth 💼 Potential for weaker corporate earnings, especially outside AI/tech sectors (Q2 earnings reports in July) ⚠️ Stagflation threat if inflation remains sticky (PCE report on June 28) while growth stalls 💣 Market is heavily concentrated in mega-cap tech, which may unwind quickly if sentiment shifts If upcoming data (PCE inflation, jobs report, Fed minutes) disappoints, the market could face a broad-based correction. Positive scenarios to watch: ✅ If inflation data (PCE) shows meaningful cooling, the Fed could pivot faster
Could a deeper-than-expected GDP contraction (-0.5%) trigger a sell-off in the U.S. stock market?
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$DBS(D05.SI)$  always bullish on DBS
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$YIELDMAX MSTR OPTION INCOME STRATEGY ETF(MSTY)$ Monthly dividend stock  • A high-risk, high-reward ETF offering over 50% dividend yield • Designed to generate substantial monthly income • Suitable for income-focused investors willing to tolerate elevated risk
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$BRK.B 20250404 515.0 PUT$ Learned from Tiger community to open Buy PUT when stocks are likely to become red. $Berkshire Hathaway(BRK.B)$  

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