Wall Street Gains as Economic Data Surprises
U.S. stock indexes rose on Thursday, driven by stronger-than-expected GDP data. The Dow, S&P 500, and Nasdaq reversed previous losses, while small-cap stocks outperformed. Investors are eyeing further economic indicators for clues on potential interest rate cuts by the Federal Reserve due to easing inflation and labor market weakness.
U.S. stock indexes saw a rise on Thursday, with the Dow, S&P 500, and Nasdaq reversing earlier losses, spurred by robust GDP data. The small-cap Russell 2000 notably surged 2%, reclaiming prior losses from a broad sell-off on Wednesday.
Strong GDP figures showed the U.S. economy expanded 2.8% in Q2, exceeding estimates of 2%, while inflation declined. This bolstered hopes for a potential Federal Reserve rate cut in September.
Investor focus is now on upcoming personal consumption expenditures price data, which could further support the case for early rate cuts amidst easing inflation and labor market uncertainties.
(With inputs from agencies.)
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