Stock Market Rallies on Positive Data and Strong Performances

The stock market rallied as shares of materials and industrials firms surged, driven by positive economic data indicating the strength of the US economy. The updated estimate for first-quarter GDP growth came in at 2%, higher than expected, while weekly jobless claims dropped to multiweek lows. This data has eased recession fears but raised the likelihood of further interest rate increases. Fed Chair Jerome Powell stated that the central bank will likely continue hiking rates to control inflation. Meanwhile, Apple's stock continued to rise, nearing a market cap of $3 trillion. However, Chinese stocks fell due to concerns over a potential US trade ban on AI chip exports to China.