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The US economy is expected to contract by 35.5% in the second quarter of the year, the Federal Reserve Bank of New York’s latest Nowcasting Report showed on Friday. 

“News from this week’s data releases decreased the nowcast for 2020:Q2 by 5.0 percentage points,” the NY Fed explained. “Negative surprises from manufacturing and wholesalers’ inventories, and consumption data drove most of the decrease.”

Market reaction

This report had virtually no impact on market sentiment. As of writing, the Dow Jones Industrial Average and the S&P 500 were down 0.8% and 0.55% on the day while the Nasdaq Composite was flat at 9,420 points.