US markets rally as Q2 GDP revised up to 3.7%

Interest rates back in the spotlight as economy improves

US markets opened sharply higher following a significant upward revision of GDP growth figures for the second quarter to 3.7%.

The second estimate of US economic growth came in significantly higher than the previous figure of 2.3% reported last month, according to the latest figures from the Commerce Department. The new estimate overshot even the most optimistic forecasts, with economists on average expecting a 3.2% increase, according to a Bloomberg survey. The third and final estimate will be released in late September. US markets opened sharply higher following the publication of the figures, with the S&P 500 rallying 1.6% to 1,971 and the Dow Jones up 1.4% to 16,518 in early morning trading. In the UK,...