S&P 500 hits new record as investors weigh strong GDP data and mega-cap tech earnings

S&P 500 hits new record as investors weigh strong GDP data and mega-cap tech earnings

US stocks traded higher on Thursday, with the S&P 500 notching a new record as data showed the US economy near full recovery, boosted by a trifecta of the stimulus spending, vaccine rollouts, and a widening reopening. Growth in the quarter pushed economic activity nearly back to pre-pandemic levels.

The country's first-quarter gross domestic product grew at an annualized rate of 6.4%, the Commerce Department announced on Thursday. The expansion ranks as the second-strongest pace of quarterly growth since 2003, dwarfed only by a record-breaking rebound in the third quarter of 2020.

The median estimate called for an expansion of 6.7% over the three-month period, according to economists surveyed by Bloomberg. The jump follows a 4.3% expansion in the fourth quarter of 2020.

"This is a meaningful acceleration of economic activity, as the faster-than-expected vaccine rollout appeared to begin the process of unlocking pent-up consumer demand, despite supply chain and weather-related disruptions," Michael Reynolds, investment strategy officer at Glenmede, said in a note Thursday.

Major indexes were already up pre-market before the 8:30 a.m. ET announcement thanks to blockbuster earnings from tech giants Apple and Facebook. Investors were also digesting the major speech delivered by President Joe Biden on his taxing and spending plans