Today, US GDP data for Q4 2021 were released. The US economy grew by 6.9%, up from 2.3% in the previous quarter and lower than forecasted increase by 7.1%. However, this data points at strong economic recovery in the post-pandemic period, which could give significant support to the stock market in the long run.
Furthermore, the ADP National Employment Report, which was published today, notably exceeded expectations. Private payrolls increased by 455,000 new jobs in March. Economists expected an increase by 450,000 jobs. February's ADP data was revised upwards to 486,000.
However, the market's reaction to these data releases was weak, as investors focused on the situation in Ukraine. Market players interpreted yesterday's statements by the Russian delegation as indicative of a possible peace treaty between Russia and Ukraine. As a result, equities made gains on Tuesday, but retreated the following day. European stock indexes and US stock index futures were in the red before the opening of the New York session, suggesting that the US market could decline.
In the FX market, the US dollar ignored the ADP report as well. Investors likely awaited the beginning of the American session before making any trading decisions.
Crude oil futures increased, as Russian president Putin's order that European buyers must pay for its gas exports in rubles is set to come into force on March 31.
The US stock market is very likely to go down today.
