US equities rose the most since January, while Treasuries fell, as strong earnings from technology companies offset the impact of a report showing slowing economic growth and higher-than-expected inflation.
The S&P 500 gained 2.0%, while the tech-heavy Nasdaq 100 gained 2.8%, as a surge in advertising revenue helped Meta Platforms beat profit estimates, sending the company's shares up 10%. Amazon and Intel were also up in after-hours trading following the release of earnings.
Treasuries fell, with the policy-sensitive two-year yield trading at 4.08%, as the unexpectedly high inflation data may prompt the Federal Reserve to keep interest rates higher for an extended period of time. The Federal Reserve of the United States is expected to raise interest rates by a quarter percentage point at its meeting next week.