US STOCKS-Wall St jumps as GDP data eases fear of Fed pullback

Wed Jun 26, 2013 3:11pm EDT
 
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* GDP reading below forecast relieves stimulus concerns

* S&P 500 above 1,600 for first time since last Thursday

* Adobe and Microsoft rise on analysts' upgrades

* Dow up 1.2 pct, S&P 500 up 1.2 pct, Nasdaq up 1 pct

By Alison Griswold

NEW YORK, June 26 (Reuters) - U.S. stocks climbed for a second straight day on Wednesday as a downward revision in the growth rate of gross domestic product soothed investors' concerns that the Federal Reserve would begin to withdraw its stimulus in the near future.

The economy grew at an annual rate of 1.8 percent in the first quarter, according to the Commerce Department's final estimate of gross domestic product. That was well below expectations for growth at a 2.4 percent annual rate.

The three major U.S. stock indexes surged at the open and extended gains in the afternoon, with the S&P 500 moving back above the key technical level of 1,600 for the first time since last Thursday.

The rally was broad, with all 10 industry sectors in the S&P 500 advancing. The healthcare, consumer discretionary and financial sectors ranked among the session's biggest gainers.   Continued...