Stocks on the Nasdaq led gains Wednesday as Wall Street eyed a fourth day of gains after revised GDP data showed the US economy grew slower in the last quarter than previously estimated.
The benchmarks erased earlier small losses after a fresh reading on US GDP showed the economy grew 2.1% in the second quarter, compared with a previous official estimate of 2.4%. Meanwhile, private-sector jobs in August as reported by ADP came in weaker than expected.
The data comes amid hopes for a “soft landing” for the economy and plays into assessments of whether the Federal Reserve is done hiking interest rates and potentially denting the economy. Signs of a slowdown in the labor market helped lift the major US gauges to gains on Tuesday.
Both releases will set the stage for Thursday’s PCE inflation report and Friday’s August jobs report, seen as crucial data points that can steer policymakers’ thinking. After this summer’s stronger-than-expected data, the Fed has noted the economy may not be cooling as it expected, Chair Jerome Powell acknowledged last week.
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