© Reuters.
By Liz Moyer
Investing.com — US stocks were rising, led by tech stocks, on a better than expected reading of fourth-quarter economic output.
At 13:12 ET (18:12 GMT), the was up 46 points or 0.1%, while the was up 0.4%, and the was up 0.8%.
Economic growth slowed in the fourth quarter compared with the third, a sign that 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 increase than at its previous meetings.
Investors have been awaiting the time when the Fed’s interest rate moves will pause or perhaps pivot, although Fed officials have emphasized they want to see the terminal rate above 5% in order to tame. 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, although it also acknowledged challenging economic conditions ahead. Shares of Tesla were up 9%
Shares of Las Vegas Sands Corp (NYSE:) rose 7% after the casino operator reported an 11% gain in revenue in the recent quarter and expressed optimism about demand this year. Chevron Corp (NYSE:) stock rose 4% after the oil major announced a plan to buy back $75 billion of its stock. Chevron record profit in recent quarters.