US stocks close higher as market shakes off poor GDP data

ANKARA

US stocks closed higher Thursday as markets shook off poor GDP data.

The American economy contracted at an annual rate of 0.9% in the second quarter, according to the Commerce Department’s first reading, which followed a 1.6% contraction in the first quarter.

President Joe Biden argued that the economy is not in a recession after GDP data showed a contraction for a second straight quarter.

"We have a record job market and record unemployment of 3.6% today. We have created 9 million new jobs since I become the president. Businesses are investing in America at record rates,” he said at a news conference at the White House. “That does not sound like recession to me.”

The blue-chip Dow was up 330 points, or 1% to 32,527. The S&P 500 rose 48 points, or 1.2%, to 4,072.

The tech-heavy Nasdaq added 130 points, or 1.1%, to 12,162.

The VIX volatility index, also known as the fear index, fell 3.4% to 22.45. The 10-year US Treasury yield decreased 1.9% to 2.680%.

The dollar index declined 0.2% to 106.26. The euro was down 0.2% to $1.0185 against the dollar.

Precious metals were on the rise with gold adding 1.2% to $1,755 and silver soaring 4.6% to $19.98.

Oil prices were mixed. Global oil benchmark Brent crude was at $102.30 per barrel for a 0.6% gain, while US benchmark West Texas Intermediate (WTI) was down 0.2% to $97.07.