# GDP Report Concerns Investors About Potential For An Upcoming Recession
The United States economy is facing uncertainty amid concerns about a possible recession. Investors are particularly worried about the latest GDP report and the Federal Reserve’s next steps. Following the recent report on the US GDP, investors believe that a rate hike may be on the horizon, potentially happening as soon as this week.
Sam Stovall, the chief investment strategist at CFRA Research, shared insights with CNBC, stating, “Investors likely believe Thursday’s GDP report will show the second quarter of decline, which is the unofficial signal of recession.” He also mentioned that while a 75-basis-point rate hike may be announced by the Fed, there could be a more tempered approach towards further rate increases, leading to a short-term counter-trend rally.
Despite these concerns, investors are trying to keep a positive outlook regarding a potential upturn in corporate earnings. Although major stock indexes have experienced declines, they have been relatively strong this month.
Barclays’ Emmanuel Cau noted in a message to investors, “Equities have managed to stage a rally MTD, and climb a wall of worry. The bounce has been led by cyclical and Growth stocks, helped by longer end yields stabilizing, which in turn eases the pressure on P/E’s.”
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