U.S. stocks gained on Thursday, with the S&P 500 closing at its highest level in nearly three months, after fourth-quarter gross domestic product data came in slightly better than anticipated. This news is a sign of optimism that the economy could experience a smoother recovery in 2023. Investors were further buoyed by the fact that the Federal Reserve has maintained a supportive monetary stance.
- The Dow gained +205.57 or +0.61%
- The S&P 500 rose +44.21 or +1.10%
- The Nasdaq advanced +199.06 or +1.76%
U.S. stock indexes surged on Thursday, reversing earlier losses, as a flurry of economic data, including the fourth-quarter U.S. gross domestic product (GDP) report, came in stronger than expected. The large-cap index ended at its highest close since December 2, 2022, according to FactSet data.
The economy grew at an impressive 2.9% annual pace in the fourth quarter of 2022, as reported by the Bureau of Economic Analysis. This marks the second successive quarter of above-normal growth, following a pair of negative readings in the first half of 2022.
Markets were encouraged by the data, which suggests that the U.S. economy is on the path of a soft landing, rather than heading into a recession. Additionally, there is speculation that lower inflation readings may result in less aggressive interest-rate hikes by the Federal Reserve……[read more]
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