Fed Inflation Gauge Hits 2-Year High As AI Boosts GDP; S&P 500 Rises (Live Coverage)

The Federal Reserve's primary inflation measure hit its highest level since November 2023, while first-quarter GDP growth slightly undershot forecasts, despite a huge boost in spending on AI-related equipment and software.

The S&P 500 rose modestly after the data as investors weighed earnings reports and capital spending plans from Google, Amazon. com, Meta Platforms and Microsoft. The inflation data follows Wednesday's hawkish policy signals at the final Fed meeting presided over by Chairman Jerome Powell.