DJIA up 279.76 points (Il Sole 24 Ore Radiocor) - New York, 25 Jul - US shares were trading higher, rebounding from yesterday's tech-driven wipeout as investors scrambled to digest hotter than expected growth data.

Advance GDP showed the US economy grew 2.8% in the second quarter compared to a downwardly revised 1.4% in the first.

The reading was well above analyst consensus of 2.0%. At the same time the core Personal Consumption Expenditures index, stripping out food and energy, rose 2.9%, above estimates of 2.7% but well below the previous quarter's 3.7%.

Meanwhile the weekly jobless report showed less people had filed for unemployment benefit than expected in the latest week, pointing to a still fairly resilient labour market.

The data come as investors try to gauge when the Federal Reserve will start cutting interest rates and whether it can engineer a soft landing, with inflation easing back to the bank's 2% target without triggering a sharp downfall.

Shares in "Magnificent Seven" duo Tesla and Alphabet meantime were steady in early trade after falling heavily yesterday following disappointing results. That had triggered worries over the durability of the AI-led rally that has taken indexes to record highs.

The underwhelming results from Tesla and Alphabet sparked fears more big tech names could disappoint as the earnings season marches on.

A big rotation into smaller stocks, which have been largely neglected in this year's tech-driven rally, is already under way as doubts rise about whether AI frenzy may have gone too far.

At 1625 GMT, the Dow Jones was up 279.76 points, or 0.70%, at 40,133.83 points.

The S&P 500 was 23.81 points, or 0.44%, higher at 5,450.94 points.

The Nasdaq was gaining 33.10 points, or 0.19%, at 17,3378.89 points.

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(RADIOCOR) 25-07-24 17:27:49 (0620) 5 NNNN