- US stocks inched higher Thursday, following the Fed's bank stress tests and new economic data.
- Bank stocks moved higher after the biggest lenders were deemed healthy.
US stocks edged higher Thursday as markets digested economic data and bank stress tests by the Federal Reserve.
The S&P 500 has gained about 6.5% in the quarter, and is on track for its third consecutive quarter of gains. In June alone, the index is up 4.7%.
Amid swirling recession concerns, a new estimate for first-quarter GDP came in higher than expected at 2%, above the 1.4% predicted by economists. Jobless claims, meanwhile, fell to the lowest mark since May, hitting 239,000, versus the expected 270,000. The signs point to enduring economic resilience despite talk of an imminent slowdown of the US economy.
At a conference in Portugal on Wednesday, Jerome Powell reiterated his stance that more policy tightening is on the way as inflation remains above target. The central bank chief nodded to the possibility at consecutive rate hikes at upcoming meetings.
Bank stocks rose, meanwhile, after the biggest US lenders passed the Fed's annual stress test. Shares of Bank of America, JPMorgan, and Wells Fargo all rose by about 3%.
Here's where US indexes stood as the market opened 9:30 a.m. on Thursday:
- S&P 500: 4,379.69, up 0.06%
- Dow Jones Industrial Average: 33,894.39, up 0.12% (41.73 points)
- Nasdaq Composite: 13,603.15, up 0.08%
Here's what else is going on:
- The inverted yield curve is flashing again — the recession indicator hasn't been wrong for 44 years.
- Tesla will struggle this year and could be forced to further cut prices, analyst says.
- Apple is a great company, but not much is driving it toward a $3 trillion valuation, analyst says.
- Ex-Goldman CEO Lloyd Blankfein said the economy could still escape a recession.
- Forget FAANG and GAMMA, these "Magnificent 7" stocks now dominate the market.
- Play defense and load up on quality stocks as recession nears, Wells Fargo says.
- New home sales surged 20% in May, and that could make the Fed happy.
In commodities, bonds, and crypto:
- Oil prices were slightly lower, with West Texas Intermediate lower by 0.6% at $69.55 a barrel. Brent crude, the international benchmark, traded flat at $74.03 a barrel.
- Gold edged lower to $1,903.80 per ounce.
- The 10-year Treasury yield ticked higher 12 basis points to 3.836%
- Bitcoin moved higher 2.15% to $30,726.01