Wall Street gains ground ahead of Fed's decision

US stock indices rose at the start of Wednesday’s trading following the release of strong economic data, as investors also await the Federal Reserve’s policy decision.

Earnings results for Meta and Microsoft are set to be released after Wednesday’s session, with expectations of further improvement supported by continued investment in artificial intelligence.

Official data showed that real GDP in the United States grew by 3% during the second quarter, compared to a contraction of 0.5% in the first quarter. The figure also exceeded analysts’ expectations, which had pointed to growth of only 2.3%.

According to ADP data, the US private sector added 104,000 jobs in July, higher than the 64,000 expected. This compares with a revised reading for June showing a loss of around 23,000 jobs.

As for market performance, the Dow Jones Industrial Average rose by 0.1% (equivalent to 40 points) to 44,672 points by 15:48 GMT. The broader S&P 500 Index climbed 0.2% (equivalent to 14 points) to 6,384 points, while the Nasdaq Composite Index advanced 0.4% (equivalent to 91 points) to 21,190 points.