US stocks rise as strong GDP data boosts soft landing outlooks

• US stocks ended higher on Thursday following a slate of fresh economic data.
• The US economy grew by 3.3% in the fourth quarter, topping estimates.
• PCE inflation, the Fed's preferred gauge, rose 2.7%, down from 5.9% in the same time last year. 

US stocks closed higher on Thursday as investors took in a slate of new economic data. 

Gross domestic product growth for the last three months of 2023 came in hotter-than-expected at 3.3%, above the forecast of 2.0%. The data suggests the Fed hasn't pushed the US toward a downturn as many have feared, and the dream scenario of falling inflation and no recession may be attainable.  

On the year, the US economy accelerated at a 2.5% annualized pace in 2023, above the 1.9% gain from the 12-month stretch prior. 

Adding to the upbeat GDP reading, PCE inflation came in at 2.7%, compared to 5.9% at the same time last year.

The data is a favorable mix of economic growth and falling inflation, which could be enough for the Fed to cut interest rates even as the economy looks strong. 

"Looking ahead, growth in 2024 will likely slow further as the economy settles back into trend growth," LPL chief economist Jeffrey Roach said. "And in the near term, the labor market will be key to consumer spending. As long as the job market holds up and disposable incomes stay healthy, the economy will avoid recession. Disinflation continues and validates the Fed's decision to implement the patient pause."

Here's where US indexes stood as the market closed at 4:00 p.m. on Thursday: 

• S&P 500: 4,894.16, up 0.53% 

• Dow Jones Industrial Average: 38,049.13, up 0.64% (+242.74 points)

• Nasdaq Composite: 15,510.50, up 0.18%

Here's what else is going on:  

• More energy and commodities firms are diverting ships away from the Red Sea. 
• The Dow will surge 24% after the Fed's first rate cut, a strategist said.
• China's economy is in trouble and a stock-market rescue won't change the "uber bearish narrative."
• One of Wall Street's biggest bulls is growing worried about a stock market meltup.
• China's stock rout has spurred a rush into banned bitcoin.
• The clean energy sector in China is filling a vacuum created by the nation's real-estate crash.
• North Korean hackers are getting away with a lot less crypto even as theft attempts rise.
• A "train wreck" earning call: How Wall Street is reacting to Tesla's earnings report.

In commodities, bonds, and crypto: 

• Oil prices climbed, with West Texas Intermediate up 2.9% to $77.26 a barrel. Brent crude, the international benchmark, rose 3% to $82.41 a barrel.
• Gold inched up to $2,017.60 per ounce.
• The 10-year Treasury yield fell five basis points to 4.128%.
• Bitcoin climbed 0.55% to $39,906.