US stocks open higher despite disappointing GDP

By Tuba Sahin

ANKARA (AA) – Major indices in the US stock market opened higher on Thursday despite the unexpected shrinking of the US economy in the first quarter of this year.

The Dow Jones industrial average was up 190.43 points, or 0.57%, to 33,492 at 9.31 a.m. EDT.

The S&P 500 gained 54.94 points, or 1.31%, to reach 4,238, while the tech-heavy Nasdaq increased 233.86 points, or 1.87%, to 12,722.

The real GDP of the US shrank at annual rate of 1.4% from January to March, disappointing market estimate of a 1.1% growth.

The yield on 10-year US Treasury notes rose 1.53% to 2.861%. The dollar index added 0.7% to 103.688.

The VIX volatility index, known as the fear index, was down 4.87% to 30.06.

Precious metals were down, with gold losing 0.07% to $1,887 and silver falling 1.84% to $23.07.

Oil prices decreased on Thursday as declining fuel demand in China due to the spread of COVID-19 eased supply concerns.

Global oil benchmark Brent crude was trading at $104.73 a barrel, down 0.21%, while US benchmark West Texas Intermediate (WTI) was at $101.86 per barrel – a 0.16% decline.