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Stocks freak out in pre-market after US GDP shockingly shrinks in fourth quarter 2012

Simone Foxman

The US economy declined for the first time since the second quarter of 2009, amid reduced government spending, lower business investment in building inventories, and weak exports. The announcement shocked traders, which had expected the economy to grow, although weakly, at a rate of 1.1%. Unsurprisingly, US stock futures tumbled.

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