Wall Street’s main indexes rose after revised GDP
New York (Reuters) – On Wednesday, Wall Street’s main indexes rose after the downgraded review of U.S. economic growth in the fourth quarter weakened the case for faster increases in interest rates.
Strong economic data earlier in the month had raised alarm among traders that U.S. interest rates would rise rapidly than previously predicted, sparking Wall Street’s biggest selloff in two years.
The U.S. Commerce Department said gross domestic product long-drawn-out at a 2.5 percent annual rate, instead of the earlier reported 2.6 percent pace.
Even with the gains in recent weeks, the S&P 500 .SPX and the Dow .DJI are still on track for their first monthly fall since last March.
Peter Cardillo, chief market economist wrote in a note at First Standard Financial in New York, “As February comes to a close, large gyrations experienced during the month could very well spill into next month as topic of rates dominates,”
By 9:32 a.m. ET, the Dow had added 105.47 points to 25,515.5. The S&P 500 .SPX rose 0.43 percent to 2,756.19 and the Nasdaq Composite .IXIC gained 0.52 percent to 7,368.17.
A string of retail earnings flock gains in the S&P retail index .SPXRT, which was up 0.94 percent.
Shares of No.2 home improvement chain Lowe’s (LOW.N) fell just about 9 percent after its quarterly profit and margins missed estimates as it spent heavily to take on contest.