U.S. second-quarter growth slows to 1.5% as inflation remains elevated

Key points

• U.S. GDP increased 1.5% from April through June, down from 2.1% growth during the first quarter, the Commerce Department’s Bureau of Economic Analysis reported.
• Consumer spending rose 3.2% in the second quarter, while the trade deficit and technology imports weighed on growth, according to the report and analysts.
• The annual PCE inflation rate reached 3.7% in June, easing from 4.1% in May as petrol prices later moved higher.
• The Federal Reserve kept its interest-rate target at 3.5% to 3.75% on Wednesday.
• During midday trading, the Nasdaq gained 2.6%, the S&P 500 rose 1.2% and the Dow Jones Industrial Average advanced 0.5%.