On Wall Street, the Dow Jones Industrial Average was up 1.6%; the S&P500 index gained 1.8%; and the Nasdaq Composite advanced 2.4%.
All 11 major S&P sectors improved, led by a 3% rise in consumer discretionary, followed by a 1.7% rise in financials.
The department store chain Macy’s gained 12.1% after raising its annual profit forecasts, thanks to the recovery in demand for party wear.
Dollar General Corp and Dollar Tree climbed 13.2% and 17.8%, respectively, after raising their annual sales forecasts, at a time when more Americans are turning to discount store purchases now that inflation is at a four-decade high.
For its part, a report from the Department of Commerce showed that US Gross Domestic Product fell at an annualized rate of 1.5% last quarter, revised down from a 1.4% decline in April under the weight of a record trade deficit. In the fourth quarter, the economy grew at a strong rate of 6.9%.
Likewise, weekly applications for unemployment benefits fell to 210,000 last week, which indicates that the labor market remains firm despite the increase in rates and the tightening of financial conditions.
“These numbers indicate that growth and demand are slowing down and that perhaps prices are starting to slow as well. And if all three of these things hold, then the case for a cautious turn will become stronger during the summer months.” , said Thomas Hayes of Great Hill Capital.
Source: Ambito
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