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.
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.
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