On Wednesday, stocks ended a fourth straight day of gains as updated GDP statistics revealed that the US economy expanded less quickly than initially predicted in the third quarter.
The Dow Jones Industrial Average (DJI) gained 0.1% while the S&P 500 (GSPC) gained roughly 0.4%. The IXIC, the Nasdaq Composite, rose 0.5%.
The benchmarks reversed earlier slight losses as a new estimate of US GDP revealed that the economy expanded by 2.1% in the second quarter rather than the 2.4% previously estimated by the government. ADP’s estimate on private sector employment for August was worse than anticipated.
The report contributes to views of whether the Federal Reserve is done raising interest rates and potentially harming the economy as it comes amid promises for a “soft landing” for the economy. Tuesday’s gains in the major US indexes were aided by indications of a slowdown in the labour sector.
Both announcements will set the setting for the important data points that can influence policymakers’ decisions, the PCE inflation report on Thursday and the August jobs report on Friday. According to Chair Jerome Powell this week, the Fed has recognised the economy may not be cooling as projected in light of this summer’s stronger-than-expected data.