The Dow Jones rose more than 300 points as traders cheered stronger-than-expected US economic growth data

The Dow Jones Industrial Average rose on Thursday after new data showed that the economy grew faster than expected and hinted at lower inflation.

The Dow rose 338 points, or 1.1%, clinging to a portion of its early gains of 559 points. The S&P 500 is down 0.2%, while the Nasdaq is down 1.1%, after both traded positively earlier in the day.

Increase the GDP of the United States at a rate of 2.6% annually For the period, versus Dow Jones estimates of 2.3% growth. The report, the first quarter of positive growth for 2022, eased investor fears about a recession.

In addition to showing stronger-than-expected growth, the GDP report provided at least some good news on inflation. The Series-Weighted Price Index, a measure of the cost of living adjusted to reflect changing consumer behavior, rose 4.1% for the quarter, well below the 5.3% estimate. Also, the headline inflation rate rose to 4.2%, down sharply from 7.3%, according to a metric used by the Federal Reserve.

That gave hope to market watchers looking for data pointing to lower inflation, which could prompt the Federal Reserve to ease rate hikes after the November meeting, said Cliff Hodge, chief investment officer at Cornerstone Wealth. Bond yields were also lower than the data.

“This morning’s GDP release was a buffer number for risky assets,” said Hodge, referring specifically to the price index data. “This is another sign that the worst inflation may be behind us.”

The technology sector continued its recent troubles – which in turn weighed heavily on the Nasdaq – as stocks in Facebook’s parent company declined 24% on a Double the fourth-quarter forecast And disappointing third-quarter earnings Wednesday. The company also said it will lose more money next year by building the metaverse. The report led to several analysts downgrading the stock.

Traders also paid attention to earnings reports from other companies, some of which outperformed technology this week. McDonald’s shares traded 3.4% after the fast food giant beat expectations before the bell. But cigarette company Altria Group fell 0.4% after it missed expectations on earnings per share and revenue.

“US stocks are struggling for direction after a mixed batch of earnings was coupled with economic data supporting the notion that the economy is weakening,” said Edward Moya, chief market analyst at OANDA. “It appears that the economy is still heading into a recession, but this may bolster the Fed’s pivotal calls that still appear to be driving some inflows into equities.”

Big tech gains continue Thursday with results from Amazon and Apple.

Stocks are emerging from a mixed session on Wednesday, with the S&P 500 and Nasdaq Composite dropping for the first time in four days on Wednesday, while the Dow ended the day marginally higher.

Over the course of the week, all major averages remained in positive territory, with the Dow and S&P up more than 2% and the Nasdaq up nearly 1%. The Dow is in full swing for its fourth consecutive positive week since its five-week streak ended in November 2021.