Stocks Jump at the Start after GDP Data

U.S. stocks began sharply higher on Wednesday, as Wall Street considered a downward revision in the nation’s economic growth. The Dow Jones Industrial Average lately rose 123.24 points, or 0.83%, to 14,883.55. The S&P 500 index climbed 12.87 points, or 0.81%, to 1,600.90. The Nasdaq Composite added 23.33 points, or 0.70%, to 3,371.22.

Gross domestic product expanded at a 1.8 percent annual rate, the Commerce Department said in its final estimate on Wednesday. Output was previously reported to have risen at a 2.4 percent pace after a 0.4 percent stall speed in the fourth quarter.

Treasurys extended gains Wednesday, sending prices up and yields down, after first-quarter gross-domestic product was cut to 1.8% growth from a prior reading of 2.4%.

An exit from the European Central Bank’s exceptional monetary policy measures remains distant, ECB President Mario Draghi reiterated on Wednesday, soothing unnerved markets after the U.S. Federal Reserve laid out a plan to reel in
stimulus.