Wall Street rebounded Tuesday, bolstered by stronger than expected GDP data that pointed to a faster second-half recovery for the US economy.
S&P 500 futures were up 3.25 points by the end of New York trading. The large-cap S&P 500 Index rose 2.94 points, or 0.1%, to close at 2,204.66.
Nine of the S&P 500’s 11 main sectors finished higher Tuesday. Health care and real estate contributed the most to the gains, rising 0.7% apiece.
Information technology stocks added 0.2%, while financials, materials and utilities also finished in positive territory.
Energy shares were down 1.2%, as lingering doubts about an upcoming OPEC meeting sent crude prices to multi-week lows.
Telecom was the other sector to finish lower.
All of Wall Street’s major averages finished positively, with the Nasdaq briefly returning to all-time highs. The Nasdaq Composite Index finished up 11.11 points, or 0.2%, to close at 5,379.92. The Dow Jones Industrial Average rose 23.70 points, or 0.1%, to finish at 19,121.60.
The CBOE VIX, a measure of implied 30-day volatility in S&P 500 index prices, fell 1.9% to 12.90. The so-called “fear index” rose at the start of the week as US stocks recorded their worst performance since the November 8 election.
The Commerce Department reported on Tuesday that gross domestic product (GDP) expanded at an annualized 3.2% in the third quarter, up from a preliminary estimate of 2.9%. That was the fastest acceleration since the third quarter of 2014. A median estimate of economists called for a gain of 3%.
The Atlanta Federal Reserve said last week that it expects the economy to expand 3.6% in the fourth quarter, highlighting the strength of the second-half recovery.
On Wednesday, payrolls processor ADP will release its estimate for November private sector job creation. US private employers are believed to have added 160,000 workers to payrolls this month, up from 147,000 in September.
Two days later, the Commerce Department will release the official nonfarm payrolls report, which is expected to show the creation of 170,000 jobs in November.