Investing.com - U.S. stocks rose on Wednesday after investors took a dismal first-quarter GDP report in stride, betting that the second quarter will reveal a solid uptick in economic activity.
At the close of U.S. trading, the Dow 30 rose 0.29%, the S&P 500 index rose 0.49%, while the NASDAQ Composite index rose 0.68%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was down 4.45% at 11.59.
The Commerce Department reported earlier that U.S. gross domestic product contracted at an annual rate of 2.9% in the first quarter of the year, far surpassing consensus forecasts for a decline of 1.7%.
U.S. first-quarter GDP was initially reported to have increased by 0.1%, but was subsequently revised to show a contraction of 1.0%.
The difference between the second and third estimate was the largest since records began in 1976, the Commerce Department added.
A separate report showed that U.S. durable goods orders fell 1.0% in May, while core durable goods orders fell 0.1%. Market expectations had been for an increase of 0.2% and 0.4%, respectively.
Stocks rose anyway, as recent housing and other economic indicators have depicted a U.S. economy that is rebounding from a rough winter that seriously disrupted commerce.
First-quarter earnings have given investors room to believe that the economy is gaining steam as well.
Meanwhile in corporate news, drug maker Bristol-Myers Squibb Company (NYSE:BMY) saw its shares rise earlier on news of positive results of an experimental skin-cancer drug's trial.
Cereal maker General Mills Inc (NYSE:GIS) shares fell on disappointing earnings, while agribusiness giant Monsanto Company (NYSE:MON) hiked its earnings outlook for the year.
In other news, the Supreme Court ruled in favor of television broadcasters on their assertions that TV startup Aereo had violated copyright law.
Leading Dow Jones Industrial Average performers included Nike Inc (NYSE:NKE), up 1.97%, Pfizer Inc (NYSE:PFE), up 1.69%, and Merck & Company Inc (NYSE:MRK), up 1.60%.
The Dow Jones Industrial Average's worst performers included Boeing Company (NYSE:BA), down 1.63%, General Electric Company (NYSE:GE), down 0.58%, and Exxon Mobil Corporation (NYSE:XOM), down 0.56%.
European indices, meanwhile, ended the day lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 0.85%, France's CAC 40 fell 1.28%, while Germany's DAX fell 0.71%. Meanwhile, in the U.K. the FTSE 100 fell 0.79%.
On Thursday, the U.S. is to release data on personal income and expenditure, as well as data on inflation linked to personal spending.