U.S. Stocks Opened Slightly Higher After Fed-Fueled Bounce

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U.S. Stocks Opened Slightly Higher After Fed-Fueled Bounce
Credit: © Reuters.

By Liz Moyer

Investing.com -- U.S. stocks opened higher, extending Wednesday’s Fed-fueled bounce despite news the economy weakened in the second quarter.

At 9:40 AM ET, the Dow Jones Industrial Average rose 50 points, or 0.1%, while the S&P 500 rose 0.1% and the NASDAQ Composite was flat.

Investors expect the Federal Reserve to slow the pace of interest rate increases after yet another 0.75-point hike on Wednesday as it tries to tame inflation. 

Then, this morning, the first reading of second quarter gross domestic product showed a drop of 0.9%, the second-straight contraction. That’s considered by many to be a recession signal, though the Biden administration has been out refuting the idea of a recession in recent days.

Tech earnings have also been driving stock market gains this week, with the Nasdaq surging more than 4% on Wednesday. Today brings reports from Apple Inc (NASDAQ: AAPL ) and Amazon.com Inc (NASDAQ: AMZN ) after the closing bell.

Spirit Airlines Inc (NYSE: SAVE ) stock rose 3.6% after JetBlue Airways Corp (NASDAQ: JBLU ) said it would buy the discount carrier for $3.8 billion, the culmination of a months-long drama that had Spirit terminate another agreement with Frontier Group Holdings (NASDAQ: ULCC ) on Wednesday as shareholders were set to reject the transaction. JetBlue stock was unchanged.

Meta Platforms Inc (NASDAQ: META ) shares fell 7.8% after the Facebook parent revealed a pullback in digital advertising on the way to worse-than-expected results.

Oil gained. Crude Oil WTI Futures was up 1.5% to $98.70 a barrel, while Brent Oil Futures rose 1.5%, to $103.23 a barrel. Gold Futures rose 1.7%, to $1,748 an ounce.

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