U.S. Outlook: The vote is in
The Brexit vote is in. Markets around the world rallied yesterday as it appeared from numerous polls that the vote would sway toward the remain camp. But when the vote was finally tallied, the leave camp took the day.Key observations:
- The financial market reaction has been swift, and the U.S. market will not be spared. S&P 500 futures indicated a 2.8% drop from Thursday’s close, and the 10-Year Treasury yield plunged 17 basis points to 1.57%.
- Prior to this latest financial shock, U.S. economic conditions were holding up well, and growth has been on the rebound in the second quarter.
- While still early hours, my Q3 forecast for U.S. GDP is at risk now from the current global financial contagion.