Wall Street’s main stock indexes rose on Wednesday, supported by ‘big techs’, who advance in the wake of the disclosure of balance sheets. Thus, the Nasdaq is the positive highlight of the trading session.
One day after the Federal Reserve (Fed) raised interest rates as expected, the risk sentiment is also supported by the Gross Domestic Product (GDP), which came in higher than expected. At around 09:35 am, the S&P 500 index was up 0.87%; the Dow Jones was up 0.28%. The Nasdaq advanced 1.4%.
Premarket shares in Meta jumped about 10% after reporting strong gains late last night. Amazon (+2.04%) and Tesla (+1.70%) accompanied the movement.
The US Gross Domestic Product (GDP) grew by 2.4% in the second quarter of 2023, on an annualized basis, according to preliminary data released recently by the country’s Department of Commerce. The growth expectation of analysts consulted by “The Wall Street Journal” was 2%.
According to Christoph Balz and Bernd Weidensteiner of Commerzbank, although private consumption has lost steam, companies have invested significantly more. “We continue to assume that the full impact of the Fed’s massive rate hikes has yet to be felt. When that happens, the economy is likely to contract slightly,” they say.