Bonds & Stocks
Wall Street traders sent bonds lower after the latest data showed the world’s largest economy is withstanding still elevated interest rates. Treasury yields rose as US gross domestic product grew in the second quarter at the fastest pace in nearly two years. Jobless claims data showing companies remain reticent to lay off workers also contributed to the market moves.
Economy
The US economy grew in the second quarter at the fastest pace in nearly two years as the government revised up its previous estimate of consumer spending. Inflation-adjusted gross domestic product, which measures the value of goods and services produced in the US, increased at a revised 3.8% annualized pace, a Bureau of Economic Analysis report showed Thursday. That was stronger than the previously reported 3.3% advance and followed an outright contraction in the first quarter.
World
Bank of Canada Governor Tiff Macklem offered a subtle endorsement of the government’s plans to spend on infrastructure, saying policymakers in the past have not done enough to boost productivity and real incomes. Output per worker stagnated during the decade Justin Trudeau was prime minister as he prioritized policies to redistribute wealth.