Are the economic data turning on the “soft landing” narrative? U.S. stocks dropped on Tuesday following markets’ downcast response to disappointing market data. Specifically, U.S. markets at least dropped in response to a drop in factory orders. Factory order numbers had previously been a source of positivity for the U.S. economy. The tough turn for the economy should remind investors of active ETFs’ ability to respond to a market downturn.
The U.S. economy saw its second-quarter GDP growth revised lower within the last week. However, the U.S. isn’t the only major part of the global economy seeing some bad news. China, of course, has so far looked unlikely to hit its GDP growth targets this year. Consumers are still saving en masse, denying the Chinese economy a consumption-based stimulus. Meanwhile, Eurozone output is dropping faster than it has in years, while Saudi Arabian oil production will hold its one million barrels a day cut.