(AFX) - Stocks rallied Friday to end the week with solid gains as a sharp drop in second-quarter gross domestic product growth made investors hopeful that the Federal Reserve may stop raising interest rates.
GDP growth slowed by more than half to a 2.5 percent annual rate, countering a surge in core inflation and weakening consumer confidence. Analysts, however, said more recent data has shown benign inflation trends, soothing concerns about the economy's health.
The Dow Jones industrial average surged 119.27, or 1.07 percent, to 11,219.70.
The Standard & Poor's 500 index added 15.35, or 1.22 percent, to 1,278.55.
The Nasdaq composite index climbed 39.67, or 1.93 percent, to 2,094.14.
For the week:
The Dow gained 351.32, or 3.23 percent.
The S&P 500 rose 38.26, or 3.08 percent.
The Nasdaq climbed 73.75, or 3.65 percent.
For the year:
The Dow is up 502.20, or 4.69 percent.
The S&P 500 is up 30.26, or 2.42 percent.
The Nasdaq is down 111.18, or 5.04 percent.
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