Dow set to rebound after mixed GDP report

Stocks rebounded Friday, after the US economy slowed less than expected in the second quarter.

Both the S&P 500 and the Nasdaq Composite finished at new all-time highs, surpassing the records they set on Wednesday. The S<><><><><><><><><><><><><><><><><><><><><><><><><><><>P closed 0.7% higher at 3,026 points, and the Nasdaq climbed 1.1% to 8,330 points./ppThe Dow also closed higher, up 0.2%, or 52 points. The index is just 0.6% off the record it set on July 15./ppThe a href=”” target=”_blank”economy expanded at a pace of 2.1%/a between April and June, compared with the consensus estimate of 1.8%, according to a survey conducted by Refinitiv. Nevertheless, GDP came in slower than its rate of 3.1% in the first quarter./ppThe report showed that the American consumer remained strong in the second quarter, both in terms of spending and confidence./ppStrong economic data could endanger next week’s expected and highly anticipated Federal Reserve interest rate cut./pp”This report suggests the economy enters the second half of the year in good shape. We expect better manufacturing and residential investment, while consumer spending will remain solid but with a somewhat slower growth rate,” wrote David Donabedian, chief investment officer of CIBC Private Wealth Management, in emailed comments./ppChances of a quarter-percentage-point cut are just above 80%, according to the CME’s FedWatch tool./ppThe yield on 10-year US Treasuries bounced slightly higher following the GDP report, but then returned to being flat at 2.0721% and the US dollar, measured by the ICE US Dollar Index, is 0.2% higher./ppMeanwhile earnings season continues to roar on. Twitter and McDonald’s both reported before the bell, showing an a href=”” target=”_blank”increase in users for the social media platform/a and better-than-expected results for the fast-food chain./ppLate Thursday, internet giants Google and Amazon reported earnings. Google parent a href=”” target=”_blank”Alphabet beat estimates/a, while a href=”” target=”_blank”Amazon ended four consecutive quarters of record profits/a./p