The S&P 500 index rose 2.3% last week, boosting the market benchmark’s June increase to 6.5% as investors were encouraged by data showing stronger-than-expected US economic growth and lower-than-expected weekly jobless claims.
Friday marked not only the end of the week and month but also the end of Q2 and the first half of 2023. The S&P 500 is now up 16% for the first six months of the year after rising 8.3% in the second quarter.
The gains came as economic data came in better than expected while the country’s largest banks passed the Federal Reserve’s annual stress tests.
Among the stronger-than-expected data, the third estimate of Q1 gross domestic product showed real gross domestic product in the quarter rose at an annual rate of 2%, up from the prior growth estimate of 1.3% and above the Econoday consensus estimate for a 1.4% gain.
Also, claims for jobless benefits in the US fell to the lowest level in four weeks, defying expectations for a slight increase in the number of people seeking unemployment benefits, government data released Thursday showed.
The Federal Reserve gave investors more good news, saying 23 of the country’s largest banks passed the regulator’s stress tests of lender strength in the face of a hypothetical economic recession.
All of the S&P 500’s sectors rose last week.
Related: Consumer Confidence Jumps to Highest Level in 18 Months
The second half of 2023 kicks off this week with readings on June manufacturing and May construction on Monday, followed by June private-sector employment reported by ADP on Wednesday, weekly jobless claims on Thursday and the June employment report on Friday. US markets will be closed Tuesday for Independence Day.
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