US stocks close higher as market shakes off poor GDP data

By Ovunc Kutlu

ANKARA (AA) - US stocks closed higher Thursday as markets shook off poor GDP data.

The American economy contracted at an annual rate of 0.9% in the second quarter, according to the Commerce Department’s first reading, which followed a 1.6% contraction in the first quarter.

President Joe Biden argued that the economy is not in a recession after GDP data showed a contraction for a second straight quarter.

"We have a record job market and record unemployment of 3.6% today. We have created 9 million new jobs since I become the president. Businesses are investing in America at record rates,” he said at a news conference at the White House. “That does not sound like recession to me.”

The blue-chip Dow was up 330 points, or 1% to 32,527. The S&P 500 rose 48 points, or 1.2%, to 4,072.

The tech-heavy Nasdaq added 130 points, or 1.1%, to 12,162.

The VIX volatility index, also known as the fear index, fell 3.4% to 22.45. The 10-year US Treasury yield decreased 1.9% to 2.680%.

The dollar index declined 0.2% to 106.26. The euro was down 0.2% to $1.0185 against the dollar.

Precious metals were on the rise with gold adding 1.2% to $1,755 and silver soaring 4.6% to $19.98.

Oil prices were mixed. Global oil benchmark Brent crude was at $102.30 per barrel for a 0.6% gain, while US benchmark West Texas Intermediate (WTI) was down 0.2% to $97.07.