Despite disappointing economic data and a turbulent market debut for trading app Robinhood, the Dow Jones Industrial Average rose 153 points on Thursday.
The blue-chip index rose 0.44 percent, setting an intraday high, while the S&P 500 rose 0.42 percent, also setting a new high. The Nasdaq Composite, which is heavily weighted in technology, lagged behind, rising 0.11 percent.
Markets thrived after the Commerce Department reported that the U.S. economy grew 6.5 percent in the second quarter, falling short of analysts’ expectations but indicating sustained growth in the domestic economy following months of turmoil due to the COVID-19 pandemic last year.
Craig Erlam, senior market analyst at Oanda, told CNBC the number was the result of a drop in inventories and was “nothing to be too concerned about.”
“Initial and continuing claims came in slightly higher than expected. That certainly justifies a more patient approach from the Fed though,” Erlam said.
Robinhood stock made its initial public offering trading on the Nasdaq Composite on Thursday, opening at a price of $38 per share.
The stock fell 5% in the first half-hour of trading and ended the day down 8.37%.
In a pair of unusual moves, the investing app offered roughly one-third of its shares to its own users while also allowing its employees and others to sell up to 15% of their shares immediately and another 15% after three months.
Ford stock rose 3.75 percent after the company raised its 2021 outlook after reporting profits in the second quarter, while Paypal and Facebook fell 6.23 percent and 4.01 percent, respectively, after warning of slower growth following their earnings reports.