- US stocks edged higher Thursday as investors mulled GDP numbers, jobless claims, and the conclusion of the Fed meeting.
- US gross domestic product grew at an annualized rate of 6.5% in the second quarter of 2021, missing the 8.5% jump estimated by economists.
- Robinhood priced its IPO at $38 a share, valuing the brokerage app at $32 billion. "HOOD" will begin trading on the Nasdaq later today.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
US stocks rose Thursday after data showed the economy expanded less than expected in the second quarter of 2021 and more Americans filed for unemployment than forecasted.
US gross domestic product grew at an annualized rate of 6.5% in the second quarter of 2021, missing the 8.5% jump estimated by economists. The quarter placed GDP above its pre-pandemic peak for the first time.
Meanwhile, jobless claims fell to 400,000 last week, lower than the prior week but higher than economists expected.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:
- S&P 500: 4,418.45, up 0.4%
- Dow Jones industrial average: 35,129.23, up 0.57% (198.30 points)
- Nasdaq composite: 14,774.17, up 0.06%
On Wednesday the Federal Reserve kept monetary policy unchanged, keeping interest rates low and continuing its monthly bond purchases of $120 billion. Chairman Jerome Powell said the economy is making progress towards its standards that would trigger the Fed to change its policy, but the economy is not yet fully there.
The Fed also maintained its stance that the spike in inflation is due to transitory factors.
Jefferies chief financial economist Aneta Markowska expects the Fed to announce that substantial further progress has been reached in November.
"The incremental approach to signaling taper progress reduces the risk of a disorderly repricing in the rates market, and suggests that Jackson Hole is unlikely to be a major market catalyst. In fact, today's muted market reaction suggests that tapering is already largely priced in," Markowska said Wednesday after the meeting.
Robinhood is set to start trading on the Nasdaq today under the ticker symbol "HOOD" during its highly anticipated initial public offering. The mobile brokerage firm sold 52.37 million shares at $38 each, pricing at the bottom of its proposed price range with a valuation of $32 billion.
Investor appetite for piling into gold through commodity funds seems to have dwindled in 2021 compared to last year, but demand for jewelry remains hot, according to figures released Thursday by the World Gold Council.
West Texas Intermediate crude rose 0.7%, to $72.90 per barrel. Brent crude, oil's international benchmark, increased 0.6%, to $75.20 per barrel.
Gold climbed as much as 1.4%, to $1,824.50 per ounce.
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