Tech megacaps fueled a stock-market rally, tempering data that suggested that while the Fed still has a path to a soft landing, the risk of a recession this year is very much alive.
After a period of uncertainty, the S&P 500 closed at its highest level since early December. Tesla led gains in the Nasdaq 100 after Elon Musk hinted that the company could produce 2 million vehicles by 2023. Intel fell in late trading after reporting a disappointing revenue forecast.
US GDP expanded faster than expected through the end of 2022, but there were signs of slowing underlying demand as the steepest rate hikes in decades threatened growth. The Fed is expected to raise interest rates by 25 basis points next week, amid speculation that the central bank is nearing the end of its tightening cycle. Nonetheless, officials indicate that rates will remain high for the rest of the year.