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Global Markets Update: U.S. Stocks Rise on Robust GDP Figures; Tesla Drops by Over 9%, IBM Records a 12% Increase

U.S. stock indices experienced gains on Thursday following robust economic growth in the fourth quarter.

As of 9:45 a.m. ET, the Dow Jones Industrial Average showed an increase of 81.36 points, or 0.22%, reaching 37,887.75. The S&P 500 rose by 15.31 points, or 0.31%, reaching 4,883.86, and the Nasdaq Composite saw an uptick of 49.29 points, or 0.32%, reaching 15,531.21.

According to initial estimates from the U.S. government, the economy expanded at a 3.3% annual rate in the final quarter of 2023.

At the opening bell, the Dow Jones Industrial Average gained 56.18 points, or 0.15%, reaching 37,862.57. The S&P 500 opened higher by 18.11 points, or 0.37%, at 4,886.66, while the Nasdaq Composite increased by 73.70 points, or 0.48%, reaching 15,555.62.

Tesla’s stock plummeted by 9.2%, poised to lose approximately $50 billion in value after the company warned of a significant drop in growth for the year. Boeing also experienced a 4.5% decline following the U.S. Federal Aviation Administration’s decision to restrict the planemaker from expanding production of its 737 MAX narrowbody planes. Conversely, IBM shares surged over 12% after the IT company reported stronger profits for the December quarter.

In the previous session, the Dow Jones Industrial Average fell by 99.06 points, or 0.26%, to 37,806.39, while the S&P 500 gained 3.95 points, or 0.08%, to 4,868.55, and the Nasdaq Composite increased by 55.98 points, or 0.36%, to 15,481.92.

The yield on the 10-year Treasury slipped to 4.13% from 4.18% late Wednesday.

In Europe, stock markets exhibited modest movements after the European Central Bank (ECB) maintained steady interest rates, with the pan-European benchmark STOXX 600 showing a 0.3% decline.

In Asia, stocks surged following measures by Chinese authorities to support financial markets and the economy. Hong Kong stocks rose by 2%, and Shanghai stocks increased by 3%.

Oil prices reached an eight-week high due to decreasing U.S. inventories, Chinese stimulus, and an attack on a Russian refinery. Brent crude futures rose by 1.1%, reaching $80.90 a barrel, while U.S. West Texas Intermediate crude increased by 1.2%, reaching $76.01 a barrel.

Gold prices experienced a slight rise on Thursday, aided by a minor decline in the dollar. Spot gold increased by 0.2% to $2,015.51 per ounce by 1241 GMT, while U.S. gold futures remained unchanged at $2,015.70.

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