GDP stands for Gross Domestic Product. It is a broad measure of economic output. In simple terms, GDP asks how much the economy produced over a period.
The Bureau of Economic Analysis publishes GDP in stages: advance estimate, second estimate, and third estimate. Each version can update the market's view as more data becomes available.
Why traders care
GDP affects the growth side of the macro story. Strong growth can support earnings expectations but may also keep inflation and rates in focus. Weak growth can pressure risk assets or increase expectations for easier policy.
What to watch
- Whether GDP is above or below consensus.
- Consumer spending and business investment details.
- Inflation measures included in the release.
- Revisions between advance, second, and third estimates.
GDP is usually less explosive than CPI or an FOMC decision, but it can still shape the market backdrop for stock and index-linked perps.
Official source: BEA release dates are published at bea.gov.