Broad market exchange traded funds (ETFs) experienced losses after the government announced a slower-than-expected economic expansion and as investors show growing concern over the U.S. debt ceiling.
The SPDR S&P 500 ETF (NYSEArca: SPY) was down 0.46%, the SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) was down 0.67% and PowerShares QQQ Trust (NASDAQ: QQQ) was basically flat.
The Commerce Department stated GDP expanded by 1.3% at an annualized seasonally adjusted rate in the second quarter, and first-quarter growth was downwardly revised to a 0.4% from earlier estimates of 1.9%, reports Steven Russolillo for The Wall Street Journal.
The new figures reveal “that the Great Recession – the worst on record – was even deeper than originally estimated,” said Austan Goolsbee, chairman of the White House Council of Economic Advisors, according to UPI. [These ETFs Short Large-Cap U.S. Stocks.]
Washington continues to struggle with finding a plan to lift the debt ceiling and the August 2nd deadline looms. “The tone is pretty pessimistic,” remarked Stephen Leuer, floor trader at X-FA Trading. “The market still believes a deal is coming, but it’s becoming obvious that any and all solutions are going to be very painful.”
President Obama spoke this morning and is pushing for a compromise on the debt ceiling, reports Charles Babington for The Associated Press.