Stocks rallied for a second consecutive day, cutting earlier losses as investors digested a slight economic contraction and got more comfortable with the Federal Reserve’s rate hiking plans. The major averages took a brief tumble following the highly anticipated release of gross domestic product data for the second quarter. The reading showed a decrease of 0.9% and marked two consecutive quarters of negative GDP.
Later, the market reversed its losses as investors came around to the possibility that if the economy entered a recession, it could be mild.
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Against that backdrop, investors also digested company earnings. Meta Platforms posted disappointing results late Wednesday. Stanley Black & Decker also fell short of analysts' expectations. Meanwhile Honeywell, Etsy and Ford Motor’s results came in better than anticipated.
Legislation was a catalyst for some of the most notable market moves Thursday. Solar stocks soared after Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.V., reached a deal on climate spending.
Sunrun and Sunnova were some of the biggest gainers, climbing nearly 30% and 28%, respectively. |
