Stocks Gain as Economic Resilience Takes Center Stage

U.S. equity markets advanced on Thursday, with the S&P 500 and Nasdaq Composite posting solid gains after a key economic report showed the U.S. economy grew at a faster pace than initially estimated in the first quarter.

The Commerce Department's revised data indicated Gross Domestic Product (GDP) expanded at an annualized rate of 1.4%, up from the previous estimate of 1.3%. This acceleration, though modest, provided a fresh signal of underlying economic resilience, easing some investor concerns about a potential near-term slowdown.

Market Reaction and Sector Performance

The positive economic data helped offset lingering worries about inflation and the Federal Reserve's policy path. The benchmark S&P 500 rose, led by gains in technology and communication services sectors. The tech-heavy Nasdaq outperformed, buoyed by strength in major semiconductor and software names.

  • S&P 500: Gained ground, moving closer to recent record highs.
  • Nasdaq Composite: Outperformed broader indices, highlighting continued investor appetite for growth-oriented technology stocks.
  • Market Drivers: The upward revision to GDP, coupled with stable labor market data, supported the positive sentiment.

Analysts noted that the data presents a complex picture for the Federal Reserve, balancing signs of steady growth against the ongoing mission to tame inflation. "The economy is demonstrating more stamina than many anticipated," said one market strategist. "This supports corporate earnings but also suggests the Fed can afford to be patient with rate cuts."