LONDON:U.S. stocks ended Thursday’s choppy session little changed after data showed the economy picked up its pace in the second quarter, leaving the Federal Reserve on track to raise interest rates as soon as September.
The S&P 500 SPX, +0.00% ended flat at 2,108.66, with six of its 10 main sectors closing higher. Gains in the utilities and materials sectors were offset by losses in energy and consumer staples stocks. Meanwhile, The Nasdaq Composite COMP, +0.33% added 17.05 points, or 0.3%, at 5,128.78.
Trading action was marked by swings in either director as investors digested data showed that the U.S. economy expanded at an annualized 2.3% rate in the second quarter, while first-quarter growth was increased from negative 0.2% to 0.6%.
The GDP report along with an employment report that indicated jobless claims rose last week after hitting a 40-year low but still remained near the lowest levels in decades, offered signs that the economy is on a healing path, albeit one considered slow by some measures.
The improvement in the economic picture, albeit sluggish by some measures, may have fueled some of the uncertainty in trading Thursday.
“If the Fed begins normalizing rates, it means they are confident the economy is doing well. Given the fact they are still maintaining the balance sheet and reinvesting means that the policy is still very accommodative, said Brad McMillan, chief investment officer at Commonwealth Financial Network.
Taking a sanguine posture, McMillan noted that the Fed isn’t “taking away the punch bowl yet, they are just not spiking it as much,” referring to the Fed’s attempt to tighten a nearly decadelong stretch of ultraloose monetary policy.
Initially the Dow Jones Industrial Average DJIA, -0.03% dropped more than 100 points in early trade, but finished only fractionally lower, down 5.41 points at 17,745.98.
