U.S. stocks climb as GDP report shows economy taking Fed's rate hikes in stride

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U.S. stocks opened higher on Thursday as optimism over Tesla's earnings results and a stronger-than-expected GDP report left investors in a better mood...

U.S. stocks opened higher on Thursday as optimism over Tesla’s earnings results and a stronger-than-expected GDP report left investors in a better mood following Wednesday’s intraday selloff.

The economy grew at a robust 2.9% annual pace to close out 2022, according to the first estimate of fourth quarter GDP, released Thursday morning — the latest sign that the U.S. economy is holding up well despite the Federal Reserve’s aggressive interest-rate hikes. “This is a bit of a relief rally,” said Christopher Zook, chairman and chief investment officer of CAZ Investments.

Investors also celebrated a surge in Tesla Inc. TSLA, +8.97% shares premarket after the firm released well-received results that showed record quarterly profits.

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