Wall Street rises on GDP, stimulus hopes
Wall Street rose following a report on U.S. economic growth which met expectations and on hopes for further stimulus from the Federal Reserve and the European Central Bank.
U.S. economic growth slowed, as expected, in the second quarter as consumers spent at their most sluggish pace in a year. The figure was better than investors' worse fears but still weak enough to potentially push the Fed closer to pumping more money into the economy.
"The Fed's concern and mandate is employment. Annualized GDP growth at 1.5 percent cannot begin to mend the unemployment picture," said Joseph Trevisani, chief market strategist at Worldwide markets in Woodcliff Lake, New Jersey.
Fed Chairman Ben Bernanke and other policymakers "will have all the rationale they need to open the liquidity spigot." Stocks leapt nearly 2 percent, erasing much of the losses for the week, as ECB chief Mario Draghi said he would do whatever it takes to save the euro.