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Business News/ Markets / Stock Markets/  US Market: Wall Street rises on strong GDP data, S&P 500 sets a new record

US Market: Wall Street rises on strong GDP data, S&P 500 sets a new record

US Market News: US stock market gains on positive economic indicators, with S&P 500 setting record for fifth consecutive day.

US stock market sees gains as economy outperforms expectations. (AFP)Premium
US stock market sees gains as economy outperforms expectations. (AFP)

US Market News: Thursday saw gains in most US stock as a result of the most recent indication that the economy is still far better than anticipated.

For the fifth day in a row, the S&P 500 set a record, rising by 25.61 points, or 0.4%, to 4,894.16. The Nasdaq composite rose by 28.58, or 0.2%, to 15,510.50, while the Dow Jones Industrial Average increased by 242.74, or 0.6%, to 38,049.13.

With robust consumer spending driving faster-than-expected growth in the fourth quarter, the US economy defied grim forecasts of a recession following the Federal Reserve's aggressive hike in interest rates.

Also Read: World markets today: US stocks gain after strong GDP data; Tesla plunges over 9%, IBM climbs 12%

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Following a 4.9% gain in the third quarter, the gross domestic product grew at an annualised rate of 3.3% last quarter, according to the Bureau of Economic Analysis of the Commerce Department. Increasing exports, government expenditure, and corporate investment all helped to promote growth.

The US Federal Reserve could wait until March to begin lowering interest rates due to the robust economic performance that seems to have continued into the new year. However, since inflation is cooling off, rate cuts this year are still expected.

In response to predictions of rate reduction, treasury yields declined in the bond market. After the data was released, the yield on the 10-year Treasury fell to 4.12% from 4.16% and 4.18% late on Wednesday.

Also Read: Oil prices rise 2% driven by Red Sea tensions, US crude stock draw; Brent reaches $81/bbl

Additional statistics revealed the initial jobless claims for the final week of January. 20 surpassed the projected 200,000 number to reach 214,000.

With a rise of 9.5%, IBM helped lead the market following its better-than-expected earnings announcement for the most recent quarter. The S&P 500 had increases in four of the five stocks that were correlated with it, but Tesla's 12.1% decline curbed the market's gains.

Also Read: US GDP rises 6.3%, outpacing China's 4.6% to become world’s biggest economy

Investors can see if the high valuations of these heavyweight companies are justified after their stocks have surged since Wall Street bottomed out in 2022 when they release their quarterly results next week from Apple, Microsoft, Amazon , Alphabet, and Meta Platforms.

(With inputs from Reuters and AP)

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

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Published: 26 Jan 2024, 09:02 AM IST
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