Wall Street opens higher as strong GDP eases recession fears

By Ovunc Kutlu

ISTANBUL (AA) – Major stock exchanges on Wall Street opened Thursday higher as the strong gross domestic product figure eased fears of a recession in the world's biggest economy.

The Dow Jones rose 124 points, or 0.37%, to 33,868 at 9.37 a.m. EDT (1437GMT). The S&P 500 gained 33 points, or 0.84% to 4,049.

The tech-heavy Nasdaq increased 164 points, or 1.45%, to 11,477 points.

US economy expanded 2.9% in the fourth quarter of 2022, coming higher than the market estimate of 2.6%, according to the Commerce Department’s first reading released earlier.

The stronger-than-expected figure calmed fears that the Federal Reserve's rate hikes could cause a recession in the US economy this year.

Tesla's stock price jumped more than 11% to $161.42 shortly after the opening bell. It closed the previous session at $144.43 per share after the electric carmaker said late Wednesday it achieved record revenue and income both in 2022 and its fourth quarter.

The VIX volatility index, also known as the fear index, was up 0.2% to 19.32, while the 10-year US Treasury yield rose 0.4% to 3.476%.

The dollar index added 0.1% to 101.73, whereas the euro lost 0.1% to $1.0901 against the greenback.

Precious metals were mixed, with gold trimming 0.5% to $1,936 per ounce and silver adding 0.1% to $23.94.

Crude oil prices were on the rise, with global benchmark Brent crude increasing 1.9% to $87.73 per barrel and US benchmark West Texas Intermediate at $81.84 – a 2.1% daily gain.