© Reuters.
By Liz Moyer
Investing.com — U.S. stocks were mostly higher, led by tech stocks, on a better than expected reading of fourth quarter economic output.
At 9:52 ET (14:52 GMT), the was down 20 points or 0.1%, while the was up 0.3% and the was up 0.8%.
Economic growth slowed in the fourth quarter compared with the third, a sign the Federal Reserve’s aggressive interest rate increases last year are kicking in. rose 2.9% in the last three months of the year, beating expectations but slower than the 3.2% reported for the third quarter.
But the labor market remains robust, despite several large technology giants cutting jobs in recent days. of 186,000 came in lower than the 205,000 expected for last week and also below the week before that.
The Fed will meet next week to decide on the next step for interest rates, and it will raise by another quarter of a percentage point, which is a smaller increment than at its previous meetings.
Investors have been awaiting the time when the Fed’s interest rate moves will pause or perhaps pivot, though Fed officials have emphasized they want to see the terminal rate above 5% in order to tame inflation. That implies another rate hike or two after next week’s meeting if the Fed meets expectations.
Stocks were getting a lift from Tesla’s (NASDAQ:) better-than-expected . The electric car maker said recent price cuts have fueled demand for the product, though it also acknowledged challenging economic conditions ahead. Shares of Tesla were up 10%.
American Airlines Group (NASDAQ:) shares fell 1.3% after it forecast 2023 earnings per share in a range around $3, well above the $1.89 market consensus. Shares of Dow Inc (NYSE:) fell 1% after its missed expectations because of higher costs and a slowdown in demand.
Oil was higher. was up 1.9% to $81.64 a barrel, while was up 1.6% to $87.47 a barrel. was down 0.5% to $1932.
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