US Economy Shows Strength But Uncertainties Temper Market Optimism
• US economic data showed strong GDP growth in Q4 2023, fueling market optimism, though interest rate fears and geopolitical tensions dampened enthusiasm.
• Sector performance varies - chip stocks are driving rallies while consumer services and real estate face headwinds from a strong dollar.
• Declining natural gas prices are negatively impacting steel prices by lowering production costs.
• The surge in microchips and AI sectors contrasts with uncertainties in financial markets and consumer services.
• Geopolitical instability and the Fed's hawkish stance on interest rates have introduced market uncertainty despite positive jobs reports.