The Dow Jones Industrial Average rose 222 points, or 0.64%, while the S&P 500 advanced 0.36%, both hitting fresh records. This as the Nasdaq Composite ticked up 0.05%. The gains come a day after markets closed mixed following the Federal Reserve’s decision to keep policy on hold, with emergency measures in place, while reiterating its belief that inflation remains transitory.
U.S. GDP grew at a 6.5% seasonally adjusted annualized rate in the second quarter, according to the Census Department. The reading, which was below the 8.5% pace that analysts surveyed by Refinitiv had expected, was impacted by the supply-chain disruptions and labor shortages that have developed in the wake of the pandemic.
In stocks, Robinhood Markets Inc. priced the 55 million shares sold in its initial public offering at $38 apiece, the lower end of its marketed range. The IPO will raise $2.1 billion, giving the trading app company, which trades under the ticker HOOD, a market value of nearly $32 billion.
Ticker Security Last Change Change % FB FACEBOOK, INC. 357.00 -16.28 -4.36%
Facebook Inc. reported earnings and sales that exceeded Wall Street estimates, but warned revenue growth would slow due to tough comparisons. On the company’s quarterly earnings call, CEO Mark Zuckerberg said Facebook will in the coming years transition from a social media company into a metaverse company.
Ford Motor Co. posted a surprise quarterly profit and raised its earnings guidance as the chip shortage has caused the automaker to focus on higher-margin vehicles.
Ticker Security Last Change Change % AMZN AMAZON.COM, INC. 3,595.70 -34.62 -0.95%
Amazon Inc. will release its quarterly results after Thursday’s closing bell.
Elsewhere, SoftBank Group is selling 45 million Uber Technologies shares in order to cover losses in its Didi Global and Alibaba, according to CNBC.
Didi Global surged after a separate report said the ride-hailing company was considering going private to appease Chinese authorities. Didi, which called the report a "rumor," went public on the New York Stock Exchange on June 30.
In commodities, West Texas Intermediate crude oil rose 57 cents to $72.96 a barrel and gold jumped $24.30 to $1,824 an ounce.
Overseas markets were in rally mode.
In Europe, Britain’s FTSE 100 advanced 0.98%, France’s CAC 30 climbed 0.64% and Germany’s DAX 30 edged up 0.36%.
Hong Kong’s Hang Seng index paced the gains in Asia, surging 3.3%, while China’s Shanghai Composite index and Japan’s Nikkei 225 traded up 1.49% and 0.73%, respectively.