Projection on GDP drives stocks higher
U.S. stocks climbed Wednesday as investors cheered a report of stronger economic growth.
Technology companies, retailers and travel providers all made solid gains.
The Commerce Department raised its estimate for economic growth and said the U.S. gross domestic product grew at its fastest pace in two years between April and June. Stocks were wobbly at the outset, but investors’ concerns about tensions between the U.S. and North Korea appeared to ease, and stocks moved higher as the day wore on. Along with technology companies and consumerfocused firms, health care companies and banks finished higher.
The Standard & Poor’s 500 index climbed 11.29 points, or 0.5 percent, to 2,457.59. The Dow Jones industrial average picked up 27.06 points, or 0.1 percent, to 21,892.43. The Nasdaq composite gained 66.42 points, or 1.1 percent, to 6,368.31 as technology companies rose for the third day in a row.
The Russell 2000 index of smaller-company stocks added 7.64 points, or 0.6 percent, to 1,391.32.
The government raised its GDP projection from last month, and the secondquarter estimate is much better than the first quarter, when growth was 1.2 percent.