Wall Street Starts Strong on Upward GDP Revision and Fed Rate Reduction

The major Wall Street stock indexes opened higher on Thursday, buoyed by the final estimate of the US gross domestic product (GDP) growth, which was revised upward to 3.1% in the third quarter of 2024 by the Bureau of Economic Analysis (BEA). This positive economic data, combined with the Federal Reserve's decision to reduce its interest rates by 25 basis points, has instilled a sense of optimism among investors.

The Dow Jones Industrial Average rose by 0.77% at the opening bell, with notable gains from Nvidia, which increased by 2.19%. Meanwhile, the Nasdaq 100 advanced by 0.75%, driven by a 3.78% climb in Paychex. The S&P 500 also jumped by 0.73% at the open, with APA Corporation adding 2.21% to its value.

In addition to the stock market performance, the euro strengthened against the dollar, trading at $1.04000, up 0.34% at 9:29 am ET. This comprehensive upward trend across various financial indicators reflects a positive outlook for the US economy, as reinforced by Fed Chair Jerome Powell's optimistic remarks about the economic prospects for 2025.