U.S. stocks are rising after stronger-than-expected GDP report, Meta earnings

Investing.com -- U.S. stocks were rising after a stronger-than-expected report on economic output for the second quarter put the Dow on a path for the best winning streak in decades.

At 10:55 ET (14:55 GMT), the Dow Jones Industrial Average was up 63 points or 0.2%, while the S&P 500 was up 0.6% and the NASDAQ Composite was up 1.1%.

Meta Platforms boosts tech stocks

Tech stocks are getting a boost from hopes the Federal Reserve has reached the end of its interest rate increases. Meta Platforms Inc (NASDAQ:META) stock was surging 6.9% after a strong forecast for earnings as the social media platform operator focuses on efficiency and builds out artificial intelligence-driven capabilities.

That outlook came on the heels of a strong earnings report from Google-parent Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), which also showed that digital advertising is in a rebound.

Tech stocks have rallied nearly 35% this year, and the Dow is on track for a 14-day winning streak after notching its longest rally since mid-1987 on Wednesday.

Fed's Powell wouldn't rule out another rate hike

The Fed raised interest rates by another quarter of a percentage point on Wednesday, as expected, and Chair Jerome Powell wouldn’t rule out another rate hike this year, perhaps as early as September. But Powell repeated the Fed’s stand that its decisions would be driven by data, and recent economic reports show signs that inflation is cooling.

Powell suggested on Wednesday that the economy is growing at a slightly better “moderate” pace, an upgrade from “modest,” adding that the Fed no longer forecasts a recession. Gross domestic product for the second quarter rose 2.4% from the prior quarter, better than expected.

While Powell says the Fed’s work to fight inflation and push it back to its 2% annual target rate, is still not done, market watchers are warming to the idea that the rate-hiking is over. Futures traders see a greater than 50% probability rates will stay at the new current level this year, while some see about a 30% probability of one more increase.

Travel stocks in focus

In other stock movers, online auction site eBay Inc (NASDAQ:EBAY) forecast disappointing third-quarter profit, sending its stock down 8.6%.

Royal Caribbean Cruises Ltd (NYSE:RCL) shares rose 8.7% after the cruise operation raised its forecast for annual profit, while fellow travel stock Southwest Airlines Company (NYSE:LUV) fell 9.5% after it warned of higher labor costs.