Dow, small caps outperform on GDP data relief
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
US economic growth regains steam in Q2; inflation slows
Ford slumps as higher costs, EV unit dent profit growth
IBM gets boost from software, AI demand, as consulting slips
American Airlines recovers ground
Indexes up: Dow 0.88%, S&P 0.61%, Nasdaq 0.43%
Updated at 12:03 p.m. ET/1603 GMT
By Ankika Biswas and Lisa Pauline Mattackal
July 25 (Reuters) - Wall Street's main indexes rose on Thursday, with the Nasdaq and the S&P reversing early losses while the Dow and small-cap stocks outperformed, as stronger-than-expected GDP data provided some relief after the previous session's tech mauling.
The small-cap Russell 2000 .RUT jumped 2% and was on track to fully recoup the losses from Wednesday's broad Wall Street sell-off. The Dow .DJI also bounced back, as investors tried to determine if the recent flight to underperforming sectors was justified.
Most megacap stocks were set to extend losses, with Microsoft MSFT.O, Nvidia NVDA.O and Meta Platforms META.O down between 0.5% and 1.6%.
While Alphabet's GOOGL.O shares were down 0.5%, Tesla TSLA.O was up 3%. Lackluster earnings from the Google parent and the EV maker had pummeled the so-called "Magnificent Seven" group of tech stocks on Wednesday, prompting the Nasdaq .IXIC and the S&P 500 .SPX to log their worst day since 2022.
Data showed the U.S. economy expanded 2.8% in the second quarter, versus an estimate of 2%, but inflation subsided, leaving expectations of a September Fed rate cut intact.
"We've been calling for a Goldilocks recovery, expecting the economy to hold up, and this report shows that the economy is actually quite strong. The Fed doesn't necessarily need to kill growth; they're really looking to just kill inflation," said Brian Klimke, Cetera Investment Management's chief market strategist.
Bets of a 25-basis-point cut by September stood at 85.8%, from around 78% prior to Thursday's data, according to CME's FedWatch Tool.
Market participants are also pricing in at least two rate cuts by December this year, according to LSEG data.
Investors are now watching for the personal consumption expenditures price data on Friday, to confirm bets of an early start to interest-rate cuts after the recent trend of easing inflation and some weakness in the labor market.
While the group of heavyweightstocks has poweredthe markets to all-time highs this year,Wednesday's sell-offadded weight to fears thatthese stocks might be over-stretched and in for more turbulence.
"The companies that have done well with high interest rates and AI enthusiasm are starting to struggle. Other (lagging) indexes that are more diversified to benefit from interest rates coming down," Klimke said.
Semiconductor stocks also broadly fell, led by an11.6% tumble in Teradyne TER.O after the maker of chip-testing equipmentforecast lower-than-expected third-quarter revenue.
At 12:03 p.m. ET, the Dow Jones Industrial Average .DJI was up 350.38 points, or 0.88%, at 40,204.25, the S&P 500 .SPX was up 33.15 points, or 0.61%, at 5,460.28, and the Nasdaq Composite .IXIC was up 73.99 points, or 0.43%, at 17,416.40.
Among results-driven moves, IBM IBM.N jumped5.7%, also boosting the blue-chip Dow, after beating estimates forsecond-quarter revenue and raising the annual growth forecast for its software business.
FordF.N slumped16.7% after the automaker's second-quarter adjusted profit missed estimates by a wide margin, while American Airlines AAL.Orose 5.5%, reversing premarket losses after cutting itsannual profit forecast.
Edwards Lifesciences EW.N tumbled 28.8% after it missedsecond-quarter revenue estimates.
Advancing issues outnumbered decliners by a 2.82-to-1 ratio on the NYSE, andby a 2.24-to-1 ratio on the Nasdaq.
The S&P index recorded 39 new 52-week highs and eight new lows, while the Nasdaq recorded 133 new highs and 69 new lows.
S&P500 breaks calm streak with 2%+ drop https://tmsnrt.rs/3A8anwg
Reporting by Ankika Biswas, Lisa Pauline Mattackal and Medha Singh in Bengaluru; Editing by Savio D'Souza, Saumyadeb Chakrabarty and Pooja Desai
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
